Bitcoin (BTC) and Ethereum (ETH) have given up some of their recent gains, with BTC now trading around $118,950 and ETH at $4,225.
Both assets remain in an uptrend, but the market has entered a cautious wait-and-see mode ahead of the U.S. Consumer Price Index (CPI) report due Tuesday.
Market data from QCP shows that Bitcoin recently touched $122,000 before retracing, while Ethereum’s rally to $4,300 marked its strongest performance since 2021. The pullback hasn’t derailed broader bullish sentiment, but traders are watching closely to see if the upcoming inflation figures will determine the next major price move.
Analysts say that softer-than-expected CPI numbers could strengthen expectations for a Federal Reserve interest rate cut in September. Such a move would likely boost risk assets, potentially fueling another breakout for BTC and ETH.
However, market participants remain wary. Many are hedging their positions against potential downside risks, particularly if inflation data surprises to the upside or dampens rate-cut hopes.
Institutional interest remains a major factor, with spot Bitcoin ETFs and large fund inflows seen as key drivers that could push BTC toward – or even beyond – its all-time high. Ethereum’s ongoing strength is also being supported by renewed demand across its DeFi and Layer-2 ecosystems.
For now, all eyes are on the CPI release and subsequent Fed policy signals, which could set the tone for the rest of August’s crypto market action.
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-and-ethereum-brace-for-cpi-data-after-price-pullback/