Bitcoin Drops to $121,000: Strong Dollar, Profit-Taking Increases
Bitcoin fell to around $121,000 on Wednesday after hitting a record high above $126,000 earlier in the week. At 06:22 GMT, BTC was last at $121,449 (-2%). The correction was triggered by strong profit-taking, while the US dollar strengthened amid concerns that the government shutdown, which entered its second week, could disrupt data releases and the Fed's policy guidance.
The previous rally was supported by large inflows into Bitcoin ETFs and the "debasement trade" narrative—a bet that fiat currencies would weaken due to fiscal uncertainty. However, the strengthening US Dollar Index and persistently high Treasury yields have cast doubt on the sustainability of this momentum, leading to a decline in risk appetite in crypto.
With the official data release pending, market focus shifts to the Fed's meeting minutes and comments by Chairman Jerome Powell later this week for clues on the path of interest rate cuts. The outcome will determine whether BTC retests its peak or continues consolidating around $120,000. (asd)
Source: Newsmaker.id