In the past twenty-four hours, bulls have taken a step back as a risk-off sentiment enveloped global markets, pushing Bitcoin down toward eighty-eight thousand dollars.
The Federal Reserve's choice to keep interest rates steady between three point five percent and three point seven five percent was anticipated, but escalating geopolitical issues and a shift toward safe-haven assets have resulted in a drastic downturn for crypto traders.
While major stock indices in the United States experienced a mix of optimism and subsequent retreat, with the S&P five hundred momentarily breaching seven thousand for the first time, the crypto landscape faced a harsher reality. Those indices are being significantly swayed by earnings reports from the largest corporations this week.
However, in the realm of crypto, the aversion to risk was palpable. Bitcoin saw a decline, and the broader CoinDesk twenty index suffered a loss of two point nine percent.
This flight from cryptocurrencies coincided with gold soaring to record highs, surpassing five thousand five hundred dollars an ounce, as gold-backed tokens like Tether Gold surged amidst aggressive accumulation from Tether and central banks. Silver also extended its gains, trading at one hundred seventeen dollars an ounce.
Bitcoin, along with the wider crypto market, continues to behave more like a liquidity-sensitive risk asset rather than a dependable hedge, given its substantial liquidity for investors seeking to exit the sector. The U.S. Dollar Index fell to a four-year low this week, yet investors remain skeptical about interpreting this decline as a fundamental shift.