January 29 News, Bitcoin traders warn that as gold and silver prices continue to strengthen, the crypto market’s focus on Bitcoin is being diverted, and BTC may face downside risks. On Thursday, Bitcoin’s price stabilized around $89,000, while Ethereum approached $3,000, and Solana, BNB, and Dogecoin also saw slight gains.
Analysis indicates that recent cryptocurrency movements have been relatively flat, contrasting sharply with the sharp fluctuations in macro markets. The US dollar index hit its largest single-day gain since November last year on Wednesday. US Treasury Secretary Scott Bassett stated that the government will continue to support a strong dollar policy. The Federal Reserve previously kept interest rates unchanged to observe inflation changes.
Meanwhile, the precious metals market surged strongly. Gold prices broke through $5,500 per ounce, and silver and copper prices also remained high. The rise in metal prices was mainly driven by the earlier softening of the dollar, geopolitical risks, and market demand for stores of value. Traders pointed out that although Bitcoin is seen as a hedge against currency devaluation, its rally has not kept pace with gold, and its price is about 30% below its peak in October last year.
FxPro Chief Market Analyst Alex Kuptsikevich said that Bitcoin continues to consolidate above $89,000, with the 50-day moving average providing support, but its overall trend resembles a high-beta risk asset rather than an independent hedge. Despite a relatively favorable external environment, BTC has held above the key support level of $85,000, but its volatility has decreased by about one-third from the highs of the past two months, raising market concerns.
The past week’s movements show that cryptocurrencies have lagged behind the rise in precious metals and have shown limited response to a weakening dollar. As Fed policy uncertainties settle, market focus shifts to earnings reports of large tech companies and the potential cross-asset volatility caused by stock, bond, or currency movements. Although Bitcoin has maintained key levels, it lacks the momentum to reassert dominance in the market, and its short-term price direction remains uncertain.
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