Bitcoin climbed above the $89,000 level but continued to trade within a narrow range, as investors remained cautious ahead of the U.S. Federal Reserve’s upcoming monetary policy decision later in the day. The move was supported by a weaker U.S. dollar and a surge in gold prices to record highs, while broader market sentiment stayed restrained ahead of the Fed’s announcement.
The world’s largest cryptocurrency posted modest gains, trading near $89,200, benefiting from dollar weakness after U.S. President Donald Trump downplayed concerns over the currency’s decline. Meanwhile, gold extended its strong rally, reaching fresh all-time highs above $5,200 per ounce, reinforcing demand for alternative stores of value.
Despite these supportive factors, Bitcoin failed to achieve a clear breakout, remaining confined within a tight range between $88,000 and $89,000. Trading activity remained subdued as investors reduced positioning while waiting for clearer signals from the Federal Reserve. Risk appetite continues to be constrained by uncertainty surrounding the near-term path of U.S. interest rates, along with ongoing questions over the central bank’s independence.
Markets widely expect the Federal Reserve to leave interest rates unchanged at the conclusion of its meeting, with investors closely monitoring the accompanying statement and comments from Chair Jerome Powell for clues on the timing of potential rate cuts. Lower interest rates typically support non-yielding assets such as cryptocurrencies by reducing the opportunity cost of holding them.
Market anticipation has also intensified around expectations that President Trump may appoint a new Federal Reserve chair, prompting investors to assess the potential impact of political influence on the future direction of monetary policy and inflation tolerance.
Across the broader cryptocurrency market, most altcoins posted modest gains in line with Bitcoin’s performance. Ethereum rose around 2.6% to trade near $3,007, while XRP gained approximately 1.1% to $1.92. Solana edged higher, while Cardano and Polygon each advanced about 1.5%. Dogecoin also climbed roughly 2.5%, leading gains among meme-related cryptocurrencies.
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