Bitcoin Nears Historic Peak as Traders Brace for US Inflation Data
Bitcoin is pushing toward uncharted price territory this week, riding momentum from a sharp rally and optimism around a post-halving surge. With fresh US CPI and PPI data set to drop in the coming days, traders are watching closely to see if the world’s leading cryptocurrency can smash through its record high.
Over the past 24 hours, Bitcoin has jumped 3.5%, climbing above $122,000 and inching toward its previous peak near $123,000. The move follows a week of consolidation under $115,000, with bulls regaining control as technical patterns, including the reappearance of a golden cross, fuel confidence in a run toward $130,000 or more.
On-chain activity is also pointing to increased market participation. According to analyst Ali Martinez, 364,126 new Bitcoin addresses were created daily, the highest figure in over a year. This surge in wallet creation suggests adoption remains strong even at these elevated price levels.
August Momentum in a Post-Halving Year
Historically, Bitcoin has shown strength in July and August during the year after a halving. Analyst Benjamin Cowen noted that,
“BTC will close the month of August in green, as per the historical trends from the previous years.”
He also pointed out that prices could cool in September before gearing up for a potential market cycle peak in Q4.
Macro factors are adding more fuel to the story. Economists expect July’s US Consumer Price Index to rise by 0.3%, partly due to tariffs introduced under Trump’s trade policies. The resulting inflationary pressure has some investors treating Bitcoin as a hedge, especially with uncertainty lingering over US job market revisions.
Fed Policy Speculation
Market odds now lean toward the Federal Reserve cutting rates in September. Data from prediction markets show a 40% probability of two rate cuts (50 basis points total), but sentiment is shifting, the chance of three cuts (75 bps total) has climbed from 8% to more than 23% in the past week. Lower rates could provide another tailwind for Bitcoin, which often benefits from looser monetary policy.
With technicals aligning, adoption growing, and macro conditions in flux, Bitcoin could be on the verge of a breakout that sets the tone for the rest of 2025.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
