Bitcoin dips below $120,000 intraday on profit-taking and a strong dollar

Bitcoin (BTC) dipped below $120,000 intraday on the 9th (local time). According to the Binance Tether (USDT) market, Bitcoin slid from a high of $123,762 to $119,651, falling about 3.3%. After setting an all-time high in the $126,000 range earlier this month, it had mostly traded above $120,000. Bitcoin is currently trading around $121,600.

Market participants pointed to profit-taking after a short-term surge and a strong dollar as the main downward factors. According to Forbes, Joe DiPasquale, CEO of BitBull Capital, said, "(After Bitcoin reached an all-time high) profit-taking, risk-off sentiment, and a stronger dollar weighed on the rally of virtual assets (cryptocurrencies) as hedge assets," adding, "weak on-chain activity also raised questions about the rally's sustainability." Bitfinex analysts also noted, "profit-taking near the record high, a short-term correction, and a strong dollar coincided."

Tom Bruni, head of Stocktwits Research, explained, "Profit-taking has appeared across risk assets ahead of the earnings season starting next week," and added, "tariff and geopolitical risks have been largely priced in, but earnings remain a variable, causing traders to act cautiously."

Some emphasized range consolidation rather than a price correction. Tim Enneking, managing partner at Psalion, said, "News of Luxembourg's sovereign wealth fund investing in Bitcoin temporarily put upward pressure coinciding with the opening of the New York stock market, but the size was not large and the market quickly absorbed it," adding, "fluctuations around $120,000 continue."