Bitcoin (BTC) dipped below $121,500 Thursday, breaking a crucial support level and the 200-hour moving average, as the broader crypto market retreated and the U.S. dollar strengthened ahead of Federal Reserve Chair Jerome Powell’s upcoming speech. Ethereum (ETH) and Binance Coin (BNB) fell more than 3%, while the CoinDesk 20 Index declined 1% to 4,155 points.
The pullback came despite continued inflows into U.S.-listed spot ETFs, which added $426 million on Wednesday, extending a streak of strong daily contributions over the past week, according to SoSoValue.
The dollar index rose to 99.10 — its highest level since August 1 — putting pressure on dollar-denominated assets, including Bitcoin and gold. Gold briefly dropped to $4,000 per ounce before rebounding above $4,030.
Powell Speech in Focus
Powell is scheduled to speak at the Community Bank Conference in Washington at 12:30 GMT. Traders will be watching closely for guidance on monetary policy, particularly given the ongoing government shutdown, which has paused key economic data releases such as inflation and employment figures.
Fed Minutes Highlight Caution
Minutes from the Federal Reserve’s September meeting, released Wednesday, expressed concern about navigating policy without fresh economic 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.
Officials largely agreed that further rate cuts are likely needed, though there was debate over their pace. The FOMC voted 11-1 to lower the federal funds rate by 25 basis points to around 4%, with a majority anticipating at least two more cuts this year, potentially bringing rates down to 3.50–3.75%. Discussions also highlighted a weakening labor market and early signs of inflation, while members agreed that Trump’s trade tariffs were unlikely to cause sustained inflationary pressure.
