In the cryptocurrency market, where downward warnings are prominent, Bitcoin displays a weak outlook in the shadow of the strong dollar and commodity rally. As the end of the week approaches, the largest cryptocurrency falls below $ 88,500, and it is noteworthy that investor interest shifts to gold and other metals. While central bank messages and financial uncertainties shape pricing in global markets, the view that Bitcoin follows a course disconnected from the macro narrative is gaining ground. Experienced investors emphasize that downside risks remain on the table in the short term.
Dollar and Commodity Rally Pushed Cryptocurrencies to the Background
Global markets gained direction with the sharp recovery in the US dollar and the strong rise on the commodity front. Bitcoin fell below $88,500 after a brief climb above $89,000 on Thursday. While Ethereum retreated to the $ 2,950 band, Solana, XRP and DOGE lost between 2 and 4 percent in intraday transactions. The activity progressed in parallel with the fluctuation in risk appetite and harsh pricing in foreign exchange markets.
Gold exceeded the level of $ 5,500 per ounce during the week, moving into record territory and maintaining its high levels. Permanence was observed after sharp increases in silver and copper. Geopolitical risks, concerns about public finances and demand for storage of value instruments were among the main reasons for the strong course in metals. Cryptocurrencies could not accompany the momentum in commodities in the same period.
The dollar index recorded its sharpest daily rise since November after US Treasury Secretary Scott Bessent’s statements that the strong dollar policy continues. The statements diminished expectations that Washington favored a weak dollar scenario and turned global foreign exchange markets upward.
Fed Messages and Technical Outlook for Bitcoin
After three interest rate cuts at the end of last year, the US Federal Reserve (Fed) kept the policy rate constant and signaled that no new steps would be taken until clearer evidence is seen on the inflation front. Although the decision did not come as a surprise, the message of a stable stance partially calmed the markets, which have been experiencing fluctuations due to fiscal policy in recent days. This search for balance on bonds, foreign exchange and stocks had a limited impact on cryptocurrency prices.
According to FxPro Chief Market Analyst Alex Kuptsikevich, Bitcoin still acts as a high-beta risk asset. While the analyst reminded that the 4 percent decline in the dollar in a short time was met with a 30 percent increase in silver and a 15 percent increase in gold, he pointed out that Bitcoin could not react on the same scale. Kuptsikevich stated that the resistance around $ 89,000 has strengthened with the 50-day moving average, and pricing below this level presents a technically weak picture.
The chart observed in the last week showed that the cryptocurrency market lagged behind the rally in metals and reacted limitedly even during periods of dollar weakness. All eyes are now on the balance sheets of major technology companies and whether they will create a new fluctuation in stocks, bonds or foreign currency. In current conditions, Bitcoin seems to lack the momentum to regain the center of global transactions, although it maintains critical supports.
