Bitcoin was little changed near $122,000 on Thursday, easing from record highs earlier this week as profit-taking and caution over a prolonged U.S. government shutdown curbed investor appetite for risk.

The world’s largest cryptocurrency last traded 0.1% higher at $121,969.5 by 02:20 ET (06:20 GMT), after swinging between large ranges in the previous.

The token hit a record peak above $126,000 on Monday, when optimism over continued inflows into U.S.-listed bitcoin exchange-traded funds (ETFs) and so-called “debasement trades” had driven prices higher.

US shutdown worries reduce risk appetite

The pullback reflected a mix of profit-taking and broader macro uncertainty, with investors turning cautious as the U.S. government shutdown entered its second week.

The deadlock in Washington has delayed key economic data releases and added to concerns about fiscal stability.

Meanwhile, the Federal Reserve’s September policy minutes 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.

The minutes showed that some participants preferred to keep rates on hold until there was clearer evidence of easing price pressures and a firmer slowdown in the labour market.

Markets are also bracing for Federal Reserve Chair Jerome Powell’s welcome remarks at the Washington conference later on Thursday.

The US Dollar Index has jumped over 1% this week, rebounding from recent lows as investors sought 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: most altcoins subdued tracking Bitcoin

Most altcoins also remained subdued on Thursday amid macro worries.

World no.2 crypto Ethereum fell 0.6% to $4,428.24.

World no. 3 crypto XRP gained 1.2% to $2.82.

Solana gained 3%, while both Cardano and Polygon were largely unchanged.

Among meme tokens, Dogecoin rose 1.1% while $TRUMP advanced 2%.