Bitcoin hovered near $89,000 on Wednesday as broader markets pushed higher and the U.S. dollar remained under pressure ahead of a closely watched Federal Reserve decision later in the day.
The largest cryptocurrency was trading around $88,800 during Asia hours, up modestly on the day after a choppy start to the week. Ether rose about 2% to just under $3,000, while most major tokens posted small gains, according to CoinGecko data. Moves were measured rather than directional, reflecting a market waiting for clearer signals.
The calmer tone in crypto mirrored a steadier backdrop elsewhere. Global stocks extended gains, with Asian equities hitting record highs and U.S. index futures pointing higher after the S&P 500 closed at a fresh peak on Tuesday. Technology shares led, helped by optimism around artificial intelligence spending and a heavy slate of megacap earnings due this week.
The dollar steadied after sliding to its weakest level since early 2022 earlier in the week, as investors weighed signals from the Trump administration that it is less concerned about a softer greenback. The weaker dollar has fueled strong rallies in gold and silver, but crypto has so far lagged that trade.
“The dollar index fell to around 95.5, its weakest level in nearly four years, lowering the opportunity cost of holding risk assets and supporting BTC’s rebound from below $88K to around $89.3K,” market analysts at crypto exchange CoinSwitch said in an email. “Downside pressure eased after BTC traded into and held the $86K–$87K zone, where a dense cluster of leveraged long liquidations was likely triggered, reducing excess leverage and stabilizing short-term market structure.”
Traders are watching whether a Fed pause — which markets largely expect — reinforces the recent bid in risk assets, or if guidance around inflation and rates prompts another reset.
At the same time, earnings from the so-called Magnificent Seven are expected to test confidence in the equity rally that has pulled capital away from crypto in recent months.
For now, bitcoin appears pinned in a narrow range, holding ground rather than chasing the broader risk move. That suggests stabilization, not momentum, as markets head into a dense stretch of macro events.
