Bitcoin retreats as investors rotate into gold after Fed rate pause
The world’s largest cryptocurrency slips back from January highs as gold surges to a fresh record, underlining a renewed preference for traditional safe havens amid a weaker US dollar and shifting monetary expectations.
Bitcoin fell by around 1% over the past 24 hours, trading near $88,000, as investors responded to the US Federal Reserve’s decision to leave interest rates unchanged.
The pullback extends a broader decline since mid-January, when bitcoin briefly touched $97,000 before momentum began to fade.
Market participants appear to be reassessing the role of digital assets as macroeconomic uncertainty increases and monetary policy enters a holding phase.
At the same time, gold climbed to a new all-time high, approaching $5,600 an ounce, with silver also advancing sharply.
The rally in precious metals has been supported by a weakening US dollar, which is down more than 2% so far this year.
Together, these moves point to a rotation away from risk assets and towards stores of value perceived as more stable.
The total cryptocurrency market capitalisation slipped to $3.07 trillion, down 1.1% over the past day, according to CoinGecko.
Mamadou Kwidjim Toure of Ubuntu Tribe said investors were increasingly favouring gold over bitcoin as conditions evolved.
He pointed to strong central bank demand for physical gold and lower volatility relative to cryptocurrencies as key drivers of the shift.
The Federal Reserve kept its benchmark rate in a 3.5% to 3.75% range after a series of cuts late last year, signalling caution rather than a change in direction.
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Analysts said the decision reinforced expectations of a prolonged pause rather than the start of a new easing cycle.
For markets, the contrast between falling cryptocurrencies and surging bullion highlights diverging views on where safety now lies.
