Bitcoin price today: hovers above $123,000, but stays below record highs

Investing.com-- Bitcoin rose above $123,000 on Thursday, but remained below ecord highs notched earlier this week, as investors assessed the potential for more Federal Reserve interest rate cuts this year.

Optimism over continued inflows into U.S.-listed bitcoin exchange-traded funds (ETFs) has also helped to drive prices of the world’s most popular cryptocurrency by market value higher.

By 08:38 ET (12:38 GMT), Bitcoin was last trading 0.6% higher at $123,347.5, after volatile trading in recent sessions.

Minutes from the Federal Reserve’s September policy meeting revealed that a “substantial majority” of officials saw scope to lower borrowing costs again this year, though several policymakers warned against moving too aggressively given lingering inflation risks.

Some participants preferred to keep rates on hold until there was clearer evidence of easing price pressures and a firmer slowdown in the labor market, the minutes showed.

Meanwhile, traders have been gauging broader economic uncertainty, including the ongoing U.S. government shutdown that has now entered its second week. The deadlock in Washington has delayed key economic data releases, depriving Fed officials of figures often used to help calibrate monetary policy.

Against this backdrop, the U.S. dollar index has jumped over 1% over the past one-week period, as investors sought out traditional safe-haven assets.

The stronger greenback has challenged the narrative underpinning recent “debasement trades” -- bets that weakening fiat currencies would boost assets like Bitcoin and gold.

Crypto price today: Ethereum, XRP slip

In altcoins, world no.2 crypto Ethereum fell 1.7% to $4,398.32.

World no. 3 crypto XRP shed 1.6% to $2.8278.

Solana gained 1.4% and Polygon added 1.1%, while Cardano edged down 0.6%.

Among meme tokens, Dogecoin dropped 1.1%.

(Scott Kanowsky contributed reporting.)