Investing.com– Bitcoin fell back toward the $88,000 area on Thursday, remaining under pressure despite a softer U.S. dollar and a powerful rally in gold, as investors digested the Federal Reserve’s decision to keep interest rates steady.
The world’s largest cryptocurrency last traded 1% lower at $88,201.6 by 01:56 ET (06:56 GMT).
Bitcoin has remained stuck between $86000 and $89000 levels this week. It has gained only 1% in January.
Bitcoin subdued despite gold rally, weak dollar
The subdued crypto price action contrasted sharply with a surging gold market, where bullion blasted past the $5,500 an ounce mark for the first time on Thursday. Safe-haven demand, geopolitical tension, and the Fed’s rate outlook underpinned the move.
However, Bitcoin, which is often touted as “digital gold,” continued to trade in a tight range.
The Federal Reserve on Wednesday kept its benchmark policy rate unchanged in a range of 3.50%-3.75%, stepping back from three consecutive rate cuts.
Fed Chair Jerome Powell said policymakers needed more evidence that inflation was moving sustainably toward the 2% target before considering further easing, pointing to a still-resilient labour market and steady economic growth.
Powell’s comments struck a cautious tone, reinforcing expectations that rate cuts, if they come, are likely to be gradual and data-dependent. That stance weighed on risk-sensitive assets, including cryptocurrencies, as investors reassessed the outlook for liquidity conditions in the coming months.
White House to meet banks, crypto firms over stalled US legislation – Reuters
The White House plans to host senior executives from the banking and cryptocurrency industries next week in an effort to break a deadlock over landmark US crypto legislation, Reuters reported on Wednesday, citing industry sources.
The meeting, convened by the administration’s crypto council, will focus on contentious provisions governing whether crypto firms can offer interest or rewards on dollar-pegged stablecoins.
The talks underscore President Donald Trump’s push to advance digital-asset legislation after months of clashes between banks and crypto groups over competitive risks.
The summit could help forge a compromise on the bill, known as the Clarity Act, which aims to establish federal rules for digital assets.
Crypto advocates argue that yield payments are critical to attracting customers, while banks warn they could accelerate deposit outflows and threaten financial stability. The Senate’s work on the bill has stalled amid those concerns, Reuters reported.
Crypto price today: altcoins also remain subdued
Most altcoins fell on Thursday, remaining subdued amid a broader risk-off mood.
World no.2 crypto Ethereum fell 1.5% to $2,958.92.
World no. 3 crypto XRP also slipped 1.5% to $188.
Solana dropped 2.4, while Cardano and Polygon eased 1.5% each.
Among meme tokens, both Dogecoin and $TRUMP declined 2%.
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