Crypto markets steadied after an early-week dip, but bitcoin continued to trail gold and silver as macro trades dominated following the Federal Reserve’s decision to hold interest rates steady.

The largest cryptocurrency slipped below $88,500 on Thursday after briefly trading above $89,000, extending a week of choppy, sideways action. Ether fell back toward $2,950, while solana, XRP and dogecoin posted intraday losses of 2% to 4%. The declines coincided with a firmer dollar and softer risk sentiment, leaving crypto underperforming commodities and equities.

Commodities remained the focus. Gold hovered near record highs after topping $5,500 an ounce earlier in the week, while silver and copper stayed elevated following strong rallies. Metals have benefited from earlier dollar weakness, geopolitical risks, and demand for assets viewed as safe havens amid concerns over government finances.

The dollar rebounded sharply on Wednesday, with the dollar index posting its largest one-day gain since November after U.S. Treasury Secretary Scott Bessent reaffirmed the administration’s commitment to a strong-dollar policy. The move countered speculation that officials were comfortable with a prolonged slide in the currency.

The Fed’s decision to keep rates unchanged after three cuts late last year reinforced that backdrop. Policymakers said they want clearer evidence that inflation is cooling before moving again, a message that helped calm currency markets after days of volatility tied to fiscal concerns and political pressure on the central bank.

Bitcoin, often described as a hedge against currency debasement, has struggled to keep pace with gold, trading roughly 30% below its October peak even as metals and global equities approach record highs. Traders say the cryptocurrency continues to behave more like a high-beta risk asset than a macro hedge, reacting to swings in the dollar and liquidity conditions rather than developing an independent narrative.

“Along with an 8% weakening of the dollar from April to June last year, bitcoin rose by more than 50%,” said Alex Kuptsikevich, chief market analyst at FxPro. “More recently, a 4% drop in the dollar index in less than two weeks coincided with a 30% jump in silver and a 15% rise in gold.”

Kuptsikevich added that bitcoin’s technical picture remains fragile. “Bitcoin is attempting to consolidate above $89,000, a key resistance reinforced by the 50-day moving average. Its position relative to this curve points to a bearish market. Support near $85,000 has held, but trading roughly a third below the highs of the past two months signals caution.”

The past week reinforced that pattern, with crypto lagging during the metals rally and failing to respond meaningfully to earlier dollar weakness.

With the Fed decision behind markets, attention is turning to upcoming megacap technology earnings and whether shifts in equities, bonds, or currencies trigger fresh cross-asset volatility.

For now, bitcoin remains in consolidation, holding critical support but lacking the momentum to rejoin the trades driving global markets.