Bitcoin price decreases while gold prices increase due to a weaker dollar

Bitcoin’s price saw a slight decline of approximately 1% in the last 24 hours, hovering around $88,000. This drop followed the US Federal Reserve’s recent decision to maintain interest rates at the Federal Open Market Committee (FOMC) meeting on Wednesday.

Since reaching a peak of about $97,000 in mid-January, the value of bitcoin, the largest cryptocurrency by market capitalization, has been decreasing. This recent decline is attributed to a shift in investor sentiment towards traditional safe-haven assets like gold.

Meanwhile, the price of gold has surged to an all-time high, nearing $5,600 per ounce, with silver also experiencing an uptrend towards $120. This increase in precious metal prices is a result of heightened geopolitical and economic uncertainty, coupled with a weakening US dollar, which has decreased by 2.13% since the beginning of the year.

Mamadou Kwidjim Toure, the founder of fintech platform Ubuntu Tribe, noted that investors are reconsidering their allocation to bitcoin in light of changing macroeconomic conditions. He highlighted gold’s impressive performance in 2025, with a 72% increase in value, surpassing $5,000 per ounce. Toure emphasized that gold’s stability and growth have attracted investors seeking a reliable asset class.

Toure also pointed out that central banks have been steadily accumulating gold over recent years, underscoring the metal’s lower volatility compared to bitcoin. This reassurance of stability is appealing to investors amid market uncertainty.

Following the US Federal Reserve’s decision to hold interest rates steady, Fabian Dori, chief investment officer at Sygnum Bank, stated that there was no significant shift in policy. Dori mentioned that the Fed’s data-dependent approach to decision-making signaled a focus on maintaining current economic conditions rather than making drastic changes.

Wenny Cai, COO of Synfutures, highlighted that the Fed’s decision reflected acknowledgment of tightening financial conditions. As a result, there has been a shift in investor preferences towards commodities and real assets, while speculative growth trades have declined. Cai emphasized the movement towards cash flow, yield, and balance-sheet durability in the current market environment.

In the crypto market, Cai noted that conditions have been quieter but healthier, with a focus on hedged exposure rather than speculative trading. Bitcoin’s dominance remains strong, institutional leverage is controlled, and derivatives activity has shifted towards options, indicating a preference for risk management over aggressive trading strategies.

Overall, the recent market movements in both traditional and crypto markets reflect a reevaluation of risk and a shift towards more stable assets in response to changing economic conditions and geopolitical uncertainties. As investors navigate these evolving landscapes, strategies centered on risk management and long-term stability appear to be gaining traction.