Bitcoin climbs above $89,000, but remains rangebound
The world’s largest cryptocurrency last traded 2.1% higher at $89,623.0
Bitcoin climbed 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. central bank’s policy decision due later in the day.
The world’s largest cryptocurrency last traded 2.1% higher at $89,623.0 by 14:54 GMT.
Bitcoin was supported by broad dollar weakness after U.S. President Donald Trump played down concerns about the dollar’s slide.
The dollar hovered near four-year lows, while gold extended a blistering rally to new 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.
Bitcoin increased slightly in the early hours of January 28 but remained rangebound as traders balanced a weaker U.S. dollar and surging precious metals against caution ahead of the central bank decision, Iliya Kalchev, Nexo Dispatch analyst, told Investing.com.
Positioning remains light, reflecting uncertainty around the near-term policy path and ongoing questions surrounding central bank independence, he added.
The central bank 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 central bank chair. Investors assess how political influence could reshape the central bank’s policy framework and tolerance for inflation.