Analyst: Bitcoin drops to around $121,000, but "October rally" sentiment remains unaffected

Jinse Finance reported that, according to The Block's bitcoin price page, BTC has dropped 0.64% in the past 24 hours, with the current trading price at $121,141. Compared to the all-time high of $126,080 set this Monday, the decline has approached 4%. “The pullback after bitcoin hit a new all-time high looks more like a brief pause rather than a trend reversal,” said Justin d'Anethan, analyst and head of partnerships at Arctic Digital. “Short-term holders have taken profits, some leveraged long positions have been liquidated, but long-term holdings remain unchanged.” The cryptocurrency analyst also pointed out that the inflow momentum into spot cryptocurrency exchange-traded funds (ETFs) remains strong, and the bitcoin balance on exchanges is at a six-year low. D'Anethan noted that the current market is influenced by macro uncertainties, such as a strengthening US dollar, persistently high yields, and the Federal Reserve's unclear stance on future interest rate decisions. The United States is still experiencing a partial government shutdown, and analysts have previously pointed out that this situation provides positive support for “safe-haven” assets such as gold and bitcoin. Although Federal Reserve Chairman Jerome Powell has sent mixed signals regarding future rate cuts, the CME's “FedWatch Tool” shows that the market believes there is as high as a 94.6% probability that the US central bank will cut rates again at the end of this month.