Investing.com– Bitcoin rose above $89,000 on Wednesday but remained largely rangebound, as investors balanced a weaker dollar and surging gold prices against caution ahead of a key U.S. Federal Reserve policy decision due later in the day.
The world’s largest cryptocurrency last traded 1.1% higher at $89,235.8 by 02:07 ET (07:07 GMT).
Bitcoin remains rangebound amid Fed caution
Bitcoin was supported by broad dollar weakness after U.S. President Donald Trump played down concerns about the greenback’s slide.
The dollar hovered near four-year lows, while gold extended a blistering rally to fresh record highs above $5,200 an ounce, reinforcing demand for alternative stores of value.
Despite those tailwinds, Bitcoin struggled to sustain a decisive breakout, trading in a narrow band around $88,000-$89,000.
Positioning remained light as traders waited for clarity from the Fed, with risk appetite constrained by uncertainty over the near-term path of U.S. interest rates and the central bank’s independence.
The Federal Reserve is widely expected to leave interest rates unchanged at the conclusion of its policy meeting later on Wednesday.
Investors will focus closely on the accompanying statement and Chair Jerome Powell’s remarks for signals on when rate cuts might begin, particularly as inflation shows signs of easing while economic growth remains resilient.
Lower interest rates typically support non-yielding assets such as Bitcoin by reducing the opportunity cost of holding them.
Adding another layer of uncertainty, traders are also watching closely for developments around Trump’s expected appointment of a new Federal Reserve chair. Investors assess how political influence could reshape the Fed’s policy framework and tolerance for inflation.
Crypto price today: altcoins see modest gains
Most altcoins also rose on Wednesday, tracking Bitcoin’s gains
World no.2 crypto Ethereum rose 2.6% to $3,006.92.
World no. 3 crypto XRP gained 1.1% to $1.92.
Solana edged slightly higher, while Cardano and Polygon gained 1.5% each.
Among meme tokens, Dogecoin rose 2.5%.
Read more on Investing.com India
