Noor Trends News, Technical Analysis, Educational Tools and Recommendations
Bitcoin Retreats From $126,000 Peak
Bitcoin fell sharply on Wednesday, retreating to around $121,000 after briefly hitting record highs above $126,000 earlier in the week. The decline came as profit-taking intensified and a stronger U.S. dollar challenged “debasement-trade” flows that had fueled recent gains. By 02:22 ET (06:22 GMT), the world’s largest cryptocurrency was trading 2% lower at $121,449, reflecting renewed caution across digital asset markets.
Bitcoin’s earlier surge to $126,186 on Monday had been driven by heavy inflows into Bitcoin exchange-traded funds (ETFs) and speculative positioning betting on a weaker dollar amid a prolonged U.S. government shutdown. Those trades, premised on concerns over fiat currency debasement and fiscal instability, have since been pressured by a rebound in the greenback.
Dollar Strength, Fed Uncertainty Pressure Crypto Sentiment
The U.S. Dollar Index climbed to a three-week high on Tuesday as investors sought safety amid the government shutdown’s economic uncertainty. The prolonged fiscal impasse has delayed key data releases and clouded the Federal Reserve’s policy outlook, leading to volatility across risk assets.
With Treasury yields holding firm and the dollar extending gains, traders have begun questioning the sustainability of Bitcoin’s recent record run. Market attention now turns to the Federal Reserve meeting minutes and comments from Chair Jerome Powell later this week for further policy cues.
Crypto Stocks Slide in Tandem
The decline in Bitcoin prices rippled through the broader crypto market, dragging related equities lower.
- MicroStrategy (NASDAQ:MSTR) fell 7%,
- Coinbase Global (NASDAQ:COIN) lost 4%,
- Bitcoin miners Marathon Digital (NASDAQ:MARA) and Riot Platforms (NASDAQ:RIOT) dropped 4% and 3%, respectively.
These moves highlight the strong correlation between digital assets and listed crypto proxies, with investors paring exposure amid rising macro uncertainty.
Altcoins Extend Losses
The broader crypto complex saw further weakness, with most altcoins trading in the red:
- Ethereum (ETH) fell 4.8% to $4,442.85.
- XRP slipped 4% to $2.85.
- Solana (SOL) and Cardano (ADA) dropped 5% and 5.2%, respectively.
- Polygon (MATIC) lost 3.6%, while meme tokens such as Dogecoin (DOGE) and $TRUMP tumbled 6% and 4%.
The broad-based decline underscores a risk-off tone across crypto markets as traders take profits and brace for potential volatility tied to Federal Reserve communications and the ongoing U.S. fiscal standoff.
