Bitcoin is charging higher as traders position for a week loaded with market-moving economic reports.
The leading cryptocurrency broef;y climbed above $122,000, extending a multi-day advance that now has bulls eyeing a potential breakout past its all-time high.
The timing couldn’t be more critical. With U.S. inflation readings due in the form of CPI and PPI reports, traders are recalibrating expectations for interest rate cuts and weighing Bitcoin’s appeal as a hedge against price pressures. Economists anticipate July’s CPI to show a modest but meaningful increase, with tariff-driven costs starting to filter through to consumer goods.
Technical and Historical Tailwinds
Momentum shifted after Bitcoin spent much of last week trading sideways near $115,000. A golden cross formation on the charts has reignited bullish sentiment, with some analysts targeting $130,000 in the near term. Market strategist Benjamin Cowen points out that in every post-halving year to date, Bitcoin has strengthened through late summer before reaching new peaks in the final quarter. At the time of writing, BTC retraced to around $121,500.
Adding to the optimism, on-chain metrics reveal a surge in network activity. Data from analyst Ali Martinez shows daily new Bitcoin addresses have reached their highest level in a year, hinting at growing retail and institutional participation.
Macro Forces in Play
Beyond crypto-specific drivers, the macro backdrop is playing a key role. The anticipated uptick in inflation has strengthened the narrative of Bitcoin as a safe-haven asset, particularly as traditional markets brace for the possibility of more aggressive monetary easing.
Betting markets now assign a 40% chance to two rate cuts totaling 50 basis points at the September Federal Reserve meeting, but the probability of a deeper 75 bps cut has jumped sharply to over 23% following weaker labor data revisions.
As the week unfolds, the CPI and PPI results could determine whether Bitcoin merely tests its previous record or smashes through it, setting the stage for an aggressive rally into the year’s final stretch.
The information provided in this article is for informational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/bitcoin-nears-record-high-as-traders-brace-for-key-inflation-data/