BTC Slips Below Key Support as Dollar Strengthens Ahead of Powell Speech

Bitcoin fell over 1% to around $121,500, dipping below its 200-hour moving average. The broader crypto market also retreated, with major tokens like BNB and ETH dropping more than 3%. This downturn followed a week of strong ETF inflows, which saw U.S.-listed spot ETFs attracting $426 million in a single day. The dollar index increased to 99.10, the highest level since August 1, negatively impacting dollar-denominated assets like Bitcoin and gold, which briefly dropped before recovering. Traders are keenly awaiting remarks from Federal Reserve Chair Jerome Powell, scheduled for the Community Bank Conference at 12:30 GMT, anticipating insights on potential economic policies in light of the ongoing U.S. government shutdown that has affected the release of crucial economic data. Meanwhile, minutes from the last Federal Open Market Committee meeting indicated a consensus on further rate cuts, yet members expressed concern about persistent inflation and the complications posed by the data gap from the government shutdown, leading to a cautious outlook on monetary policy.

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