Bitcoin (BTC) slipped below $121,500 Thursday, breaching a key support level and the 200-hour simple moving average, as the broader crypto market pulled back and the U.S. dollar strengthened ahead of Federal Reserve Chair Jerome Powell’s speech. ETH and BNB fell more than 3%, while the CoinDesk 20 Index dropped 1% to 4,155 points.
The retreat follows another strong day of inflows into U.S.-listed spot ETFs, which brought in $426 million on Wednesday, extending a streak of robust contributions over the past week, according to SoSoValue.
The dollar index climbed to 99.10 — its highest since August 1 — weighing on dollar-denominated assets including Bitcoin and gold. Gold briefly dipped to $4,000 per ounce before rebounding above $4,030.
Powell is set to speak at the Community Bank Conference in Washington at 12:30 GMT, with traders watching for signals on monetary policy amid the ongoing government shutdown that has paused key economic data releases on inflation and employment.
Fed Minutes Signal Caution on Inflation
Minutes from the Federal Reserve’s September meeting, released Wednesday, highlighted concerns about navigating policy without fresh data. “Should the shutdown not end by the FOMC’s Oct. 28-29 meeting, policymakers essentially will be flying blind on key economic metrics,” the committee noted.
While officials agreed that additional rate cuts were likely appropriate, they debated the pace of easing. The FOMC voted 11-1 to reduce the federal funds rate by 25 basis points to around 4%, with a majority anticipating at least two more cuts this year, potentially lowering rates to 3.50–3.75%. Discussions focused on a weakening labor market and early signs of inflation, though members agreed that Trump’s trade tariffs were unlikely to cause persistent inflation.
