Bitcoin remained under pressure on Thursday, slipping below $88,500 after briefly trading above $89,000 earlier in the session, extending a choppy week. Ether (ETH) fell back toward $2,950, while solana (SOL), XRP and DOGE posted deeper intraday losses of between 2% and 4%. The pullback came alongside a firmer dollar and fading momentum in broader risk markets, with crypto continuing to lag strength in commodities and equities.
Gold Holds Near $5,500, Commodities Steal Spotlight
Commodities remained the dominant trade. Gold held near record levels after topping $5,500 an ounce earlier this week, while silver and copper stayed elevated after sharp rallies. The strength in metals was driven by earlier dollar weakness, geopolitical risk and demand for value-storage assets amid uncertainty over government finances.
Dollar Index Posts Biggest One-Day Gain Since November
U.S. Treasury Secretary Scott Bessent said Wednesday that the administration continues to support a strong-dollar policy, pushing back against speculation that Washington was comfortable with a prolonged slide. The dollar index posted its biggest one-day gain since November. The move followed the Federal Reserve's decision to leave rates unchanged after three cuts late last year, as policymakers signaled they want clearer evidence that inflation is cooling before moving again.
The steady-policy message helped calm currency markets after days of volatility tied to fiscal concerns and political pressure on the central bank.
Bitcoin: More Like a High-Beta Risk Asset Than a Macro Hedge
In this backdrop, crypto has been sidelined. Bitcoin, often framed as a hedge against currency debasement, has failed to keep pace with gold's surge. It is currently trading roughly 30% below its October peak even as metals and global equities sit near record highs. Traders say Bitcoin continues to behave more like a high-beta risk asset than a macro hedge, reacting to swings in the dollar and broader liquidity conditions rather than developing an independent narrative. Alex Kuptsikevich, chief market analyst at FxPro, noted: "An 8% weakening of the dollar from April to June last year pushed Bitcoin up more than 50%. In contrast, a 4% drop in the dollar index in less than two weeks recently sparked a 30% jump in silver and a 15% jump in gold – but Bitcoin barely reacted."