Bitcoin slips below $90,000 as Fed keeps rates unchanged

Bitcoin gave up part of its earlier gains on Wednesday after the Federal Reserve left interest rates unchanged, as widely anticipated, slipping back below the $90,000 level after briefly reclaiming it for the first time since last Friday.

The world’s largest cryptocurrency was last trading 1.3% higher at $89,564.1 as of 14:29 ET (19:29 GMT).

Bitcoin climbs back above $90,000 as dollar rebounds

Bitcoin’s advance this week was underpinned by broad weakness in the U.S. dollar, after President Donald Trump sought to ease concerns over the currency’s recent decline.

The Dollar Index snapped a four-day losing streak, while gold extended its sharp rally to fresh record highs above $5,300 per ounce, further strengthening demand for alternative stores of value.

After several sessions of rangebound trading, bitcoin set its sights once again on the key psychological $90,000 level and reached that mark on Wednesday.

“Bitcoin needs to decisively break back above $90,000 and then hold that level on any pullback to attract new buying interest,” said David Morrison, senior market analyst at Trade Nation. “If that happens, $100,000 would become the next bullish target. But it’s still early, and bitcoin needs to create more distance from key support levels.”

He added that, for now, a move below $85,000 remains a clear possibility. Meanwhile, the Federal Reserve concluded its two-day policy meeting on Wednesday by keeping interest rates unchanged, in line with expectations.

Investors are paying close attention to the Fed’s accompanying statement and comments from Chair Jerome Powell for clues on the timing of potential rate cuts, especially as inflation appears to be cooling while economic growth remains solid.

Lower interest rates generally favor non-yielding assets like bitcoin, as they reduce the opportunity cost of holding them.

Adding to the uncertainty, markets are also closely monitoring developments around President Trump’s expected nomination of a new Federal Reserve chair. Investors are evaluating how increased political influence could alter the central bank’s policy approach and its tolerance for inflation.

Tether increases gold exposure, targets up to 15% portfolio allocation

Tether plans to dedicate a significant share of its investment portfolio to physical gold, expanding on bullion reserves that already underpin some of its products, CEO Paolo Ardoino told Reuters.

The stablecoin issuer currently holds roughly 130 metric tons of physical gold, having added 27 tons in the fourth quarter alone. Ardoino said the company has recently been buying about two tons per week.

“For our own portfolio, it makes sense to allocate around 10% to bitcoin and about 10% to 15% to gold,” Ardoino said, while declining to disclose the total size of Tether’s investment portfolio or the precise portion currently held in bullion.

“It’s difficult to choose which one I prefer,” he added. “It’s almost like having two children and deciding which one is more beautiful.”

Tether will maintain direct ownership of the gold, which is stored in Switzerland, and has not set a fixed target for future purchases. Buying decisions will be reviewed on a quarterly basis. Ardoino noted that the company began accumulating gold in 2020 during the COVID-19 pandemic and has steadily increased exposure as geopolitical risks have risen.

“The world isn’t in a good place right now. Gold is hitting record highs day after day. Why? Because people are afraid,” he said.

Gold prices have surged over the past year, rising 64% in 2025 and continuing their rally into 2026, with gains of 22% so far this year. The metal hit a record high of $5,311 per troy ounce on Wednesday, supported by weakening confidence in the U.S. dollar and concerns about the independence of the Federal Reserve.

Crypto prices today: altcoins post modest gains

Most major altcoins also moved higher on Wednesday, following gains in bitcoin.

Ethereum, the world’s second-largest cryptocurrency, rose 1% to $3,008.75, while third-ranked XRP added 0.4% to trade at $1.91.

Solana edged up 0.1%, and Cardano gained 0.5%.

Among meme tokens, Dogecoin advanced 0.6%.

Sources: Investing