Daily Market Update: Bitcoin Holds $88K as Stock Futures Rise on Tech Earnings

TLDR

• Bitcoin hovered near $88,000 Thursday following the Federal Reserve’s decision to maintain current interest rates unchanged
• Gold reached historic levels exceeding $5,500 per ounce while silver and copper also posted strong gains, overshadowing digital assets
• The U.S. dollar strengthened significantly after Treasury Secretary Scott Bessent confirmed commitment to strong-dollar policy
• Bitcoin dropped roughly 30% from its October high, trading more like a volatile risk asset than an inflation hedge
• Meta stock jumped 10% on strong earnings while Microsoft declined 5% on disappointing cloud revenue growth

Bitcoin maintained its position around $88,000 on Thursday as traditional assets captured market attention. The leading cryptocurrency briefly touched $89,000 before pulling back. Other digital tokens showed weakness, with ether trading near $2,950 and solana, XRP and dogecoin falling 2% to 4%.

Gold continued its record-breaking performance, holding above $5,500 per ounce after setting new highs earlier this week. Silver and copper also remained elevated following recent rallies. The precious metals surge has shifted investor focus away from cryptocurrencies.

Bitcoin currently trades approximately 30% below its October peak. This decline contrasts sharply with gold’s performance and raises questions about bitcoin’s role as an inflation hedge. The cryptocurrency has struggled to break through resistance near $89,000.

The Federal Reserve kept interest rates steady on Wednesday after three cuts in late 2025. Chair Jerome Powell stated the central bank needs more evidence of declining inflation before adjusting rates. The decision was widely anticipated by market participants.

Treasury Secretary Scott Bessent reinforced the administration’s strong-dollar stance on Wednesday. His comments triggered the dollar index’s largest single-day increase since November. The dollar’s rebound followed weeks of volatility related to fiscal policy concerns.

Bitcoin Behaves Like High-Risk Asset

Alex Kuptsikevich from FxPro highlighted bitcoin’s correlation with dollar movements. He noted that bitcoin climbed over 50% when the dollar weakened 8% between April and June 2025. Recent dollar weakness of 4% corresponded with a 30% silver gain and 15% gold increase.

Bitcoin has defended support levels near $85,000 but remains in bearish territory. The 50-day moving average reinforces resistance at $89,000. Technical indicators suggest continued consolidation without clear directional momentum.

The cryptocurrency’s failure to match gold’s rally has disappointed traders expecting similar safe-haven performance. Bitcoin appears responsive to dollar fluctuations and liquidity conditions rather than establishing independent strength. Market participants continue watching whether crypto can regain momentum.

Technology Stocks Post Mixed Results

Stock futures advanced Thursday morning as investors evaluated major technology earnings. Nasdaq 100 futures climbed 0.4% while S&P 500 futures gained 0.3%. Dow Jones Industrial Average futures remained relatively unchanged.

Meta shares surged 10% in after-hours trading following better-than-expected revenue guidance. The social media giant announced plans to invest up to $135 billion in AI development this year. Tesla added 2% after exceeding quarterly profit estimates.

Microsoft stock dropped 5% on concerns about cloud business growth. The company reported higher capital expenditures than analysts projected. Azure cloud revenue growth slowed compared to previous quarters.

Apple’s earnings report scheduled for Thursday evening will provide additional insight into consumer technology demand. Mastercard, American Express and Verizon also plan to release results this week. Economic data including jobless claims and durable goods orders will offer further market direction.

Rate futures indicate expectations for two quarter-point cuts by year-end 2026. This pricing remains consistent despite the Fed’s cautious stance. Markets will monitor upcoming data releases for inflation and employment trends.

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