Bitcoin Price Nears $122,000 After New All-Time High
Bitcoin (BTC) price is steady around $122,000 on Thursday. Earlier this week, it hit a new all-time high of $126,199. Strong demand from Exchange-Traded Funds (ETFs) helped support Bitcoin’s price. Traders are now watching Fed Chair Jerome Powell’s upcoming speech for clues about interest rate cuts and market trends.
Fed Speech and Market Reaction
Bitcoin started the week strong, reaching $126,199 on Monday. On Tuesday, it dropped 2.67% as some holders took profits. On Wednesday, Bitcoin recovered slightly, closing above $123,300. This followed the Federal Reserve’s September meeting minutes, which showed most officials support lowering interest rates later this year. However, they disagree on how many cuts are needed. This cautious optimism helped Bitcoin bounce back.
Geopolitical tensions eased after Israel and Hamas agreed to a ceasefire and hostage deal on Thursday. This also supported Bitcoin’s recovery. Investors now await Fed Chair Powell’s speech for signals on future monetary policy and its impact on Bitcoin.
Institutional Demand for Bitcoin Grows
Institutional interest in Bitcoin remains strong this week. Data from SoSoValue shows Bitcoin spot ETFs had inflows of $440.73 million on Wednesday. These inflows have continued since September 29.
DDC Enterprise Limited, a company focused on Bitcoin treasury adoption, raised $124 million in equity funding. The round was led by PAG Pegasus Fund and Mulana Investment Management. DDC plans to use the funds to expand its Bitcoin treasury strategy. So far, DDC holds 1,058 BTC.
Profit-Taking Remains Low After Record Highs
CryptoQuant reported that profit-taking is still low after Bitcoin’s recent peak. On Wednesday, Bitcoin holders realized net profits of 0.26 million BTC, equal to about $30 billion. This is half the profit level seen in July and much lower than peaks in March and December 2024.
Low profit-taking suggests that many investors are holding their Bitcoin. This could mean the price rally may continue. On-chain data shows net realized profits are rising yearly, which usually supports higher prices.
Bitcoin “OGs,” or long-term holders, are also selling less. Spending of coins held for over 10 years is at 5,000 BTC in the last 30 days. This is much lower than during previous price peaks. High selling by these holders often signals a market top, which is not happening now.
Bitcoin Price Outlook
Bitcoin broke above $120,000 on October 2 and rose 3.43% over four days to reach $126,199. After a slight pullback, it recovered but currently trades near $121,600.
If Bitcoin falls below $120,000, it could drop further to $116,000 support. The Relative Strength Index (RSI) shows a slowdown in bullish momentum, suggesting short-term consolidation. However, the Moving Average Convergence Divergence (MACD) indicator remains bullish.
If Bitcoin keeps its upward trend, it could test the record high of $126,199 again.
