Bitcoin rebounded on Wednesday, moving close to $90,000 as the crypto market gained and the U.S. dollar remained weak ahead of a Federal Reserve decision.
The cryptocurrency rose from Tuesday’s low of $87,315 to stabilize around $89,310. Other major tokens, including Ethereum, BNB, XRP, and Solana, also posted gains of 1% to 3%, lifting the total crypto market to $3.1 trillion.
Bitcoin has been in a downtrend since Jan. 15, pressured by a weakening dollar after U.S. President Donald Trump’s tariff threats on Canada. This drove investors toward gold and silver, which reached new highs, pulling capital away from crypto.
Stablecoins such as Tether and USD Coin also fell to their lowest levels since November 20, reflecting liquidity outflows from crypto markets.
Traders are cautious ahead of the Fed’s rate decision at 2:00 PM ET. The central bank is widely expected to hold rates steady at 3.50%–3.75%, following three cuts in late 2025. Markets have priced in this outcome, with over 97% probability of no change.
Technical indicators suggest a bullish setup for Bitcoin. On the 4-hour chart, the price is trading within an ascending parallel channel, while momentum indicators like MACD and RSI signal upward movement.
If Bitcoin decisively breaks above the $90,000 level, it could trigger more aggressive buying and push the price higher, at least in the short term, depending on the Fed’s messaging.
Analysts say a steady Fed decision is likely to support risk-on sentiment, which could benefit Bitcoin and other cryptocurrencies. Conversely, a hawkish stance could trigger a market reset.
