Bitcoin Holds Steady Near $122K as U.S. Shutdown and Profit-Taking Weigh on Markets
Bitcoin prices were largely stable around $122,000 on Thursday, easing slightly from record highs earlier in the week as investors took profits and grew cautious amid the ongoing U.S. government shutdown.
The world’s largest cryptocurrency was last up 0.1% at $121,969 by 02:20 ET (06:20 GMT) after a volatile week of wide price swings. Bitcoin hit a new record above $126,000 on Monday, supported by optimism over continued inflows into U.S.-listed Bitcoin ETFs and growing interest in “debasement trades” — strategies betting against weakening fiat currencies.
U.S. Shutdown Dampens Risk Sentiment
Bitcoin’s mild pullback reflects a combination of profit-taking and macroeconomic uncertainty, as the U.S. government shutdown entered its second week. The political gridlock in Washington has delayed key economic data releases and raised concerns over the country’s fiscal outlook.
Minutes from the Federal Reserve’s September meeting showed that a “substantial majority” of policymakers still see room for rate cuts later this year, though some officials warned against moving too quickly due to inflation risks.
Investors are also awaiting remarks from Fed Chair Jerome Powell at the Washington conference later Thursday for more clarity on monetary policy. Meanwhile, the U.S. Dollar Index has climbed over 1% this week, as traders sought safety in the greenback — pressuring assets like gold and Bitcoin, which are often viewed as inflation hedges.
Altcoins Mixed as Bitcoin Consolidates
The broader cryptocurrency market remained subdued on Thursday, tracking Bitcoin’s consolidation.
- Ethereum (ETH) slipped 0.6% to $4,428.24.
- XRP rose 1.2% to $2.82, while Solana (SOL) gained 3%.
- Cardano (ADA) and Polygon (MATIC) were little changed.
- Among meme coins, Dogecoin (DOGE) climbed 1.1%, and $TRUMP token added 2%.
Despite the cooling momentum, analysts note that Bitcoin’s ability to hold above $120,000 suggests continued strength in institutional demand and ETF-driven inflows.
