Bitcoin price slides as gold rallies on weaker dollar

The price of bitcoin fell by around 1% over the past 24 hours, trading close to the $88,000 (£63,690) mark, as markets digested the US Federal Reserve’s decision to keep interest rates steady at Wednesday’s Federal Open Market Committee (FOMC) meeting.

Read more: London rises as traders digest mixed US earnings and Fed rate hike

The world’s largest cryptocurrency by market capitalization (BTC-USD) has been trending lower since hitting a local peak of around $97,000 on January 15, with recent weakness coming amid a broader rotation by investors into traditional safe-haven assets.

Read more: Live crypto prices

Gold (GC=F) rose to a new all-time high on Thursday, trading just under $5,600 an ounce, while silver (SI=F) pushed towards $120, as investors sought refuge in precious metals amid renewed geopolitical and economic uncertainty. The shift comes alongside a weakening US dollar, down 2.13% year-to-date, boosting demand for alternative value stores.

The total cryptocurrency market capitalization is now $3.07tn, down 1.1% over the past 24 hours, according to CoinGecko data.

Mamadou Kwidjim Toure, founder of fintech platform Ubuntu Tribe, told Yahoo Finance that investors are increasingly valuing the role of bitcoin (BTC-USD) in portfolios as macro conditions evolve.

“As the financial landscape evolves, investors are increasingly turning from bitcoin (BTC-USD) to gold (GC=F), and for good reason,” Toure said.

“Gold has shown exceptional resilience and consistent growth, especially in a challenging market environment. While bitcoin struggled to deliver on its growth promises last year, gold has achieved a remarkable 72% return in 2025, surpassing the target of $5,000 per ounce.”

Read more: Gold price pushes above $5,500 amid weak dollar

Toure said the change reflected deeper structural trends rather than short-term market reactions, indicating sustained central bank demand for physical gold (GC=F).

“Central banks have systematically accumulated more than 1,000 tons of gold in recent years,” he said. “The volatility of gold is three to three and a half times lower than that of bitcoin, offering reassurance to investors looking for stability.”

Bitcoin (BTC-USD)’s lower move follows the US Federal Reserve’s decision on Wednesday to keep interest rates steady, keeping the benchmark federal funds rate in a range of 3.5%–3.75% after delivering three consecutive quarter-point cuts as signs of weakness in the labor market emerged.

Fabian Dori, chief investment officer at Sygnum Bank, said the meeting confirmed a holding pattern rather than signaling a significant policy shift.

Read more: Will bitcoin price fall to $50k or rise to $125k in 2026?

“With growth still robust, inflation easing only gradually, and labor markets stable, the Fed left rates unchanged and reiterated a data-driven, meeting-by-meeting approach,” Dori told Yahoo Finance. “As a result, the focus was less on the decision itself and more on how confident the Fed was about the way forward.”

He added that the Fed’s decision was increasingly likely to reinforce consolidation rather than trigger a decisive market move, with political pressures now emerging as a potential future risk.

“The next thing to watch is if the growing political stake around the independence of the Fed starts to appear more explicitly in the Fed’s communication, and in how the markets price policy risk,” said Dori.

Wenny Cai, COO of decentralized derivatives exchange Synfutures, said the Fed’s pause reflects recognition that financial conditions are already tightening, prompting a broader repricing across risk assets.

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“The result has been a rotation towards commodities and real assets, while speculative growth trades have slowed down,” Cai said. “Capital is moving toward liquidity, yield, and balance sheet durability.”

In the crypto markets, Cai described conditions as quieter but stronger. “Bitcoin (BTC-USD) dominance remains elevated near 60%, institutional leverage is subdued, and derivatives activity has moved toward options rather than perpetual futures,” she said. “This indicates a move towards hedged exposure rather than direct directional bets.”

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