Bitcoin News Today: Bitcoin Falls 2.3% to $118.7K as Inflation Data Looms

Bitcoin declined by approximately 2.3% to $118.7K ahead of the release of U.S. inflation data, pulling back from its peak above $123K in July 2025. The drop reflects growing market uncertainty as traders brace for the upcoming report, which could influence expectations around potential Federal Reserve interest rate decisions. While Ethereum has held more firmly, other major tokens like Solana and XRP have also seen declines [1]. Analysts suggest that a weaker-than-expected inflation reading could delay rate cuts, which in turn may reduce speculative demand for cryptocurrencies [1].

In a significant development in the legal sphere, Do Kwon, the founder of Terraform Labs, is expected to plead guilty to U.S. fraud charges tied to the 2022 collapse of TerraUSD and Luna. The events led to a loss of approximately $40 billion in investor assets. Kwon faces multiple charges, including securities fraud, commodities fraud, and money laundering. The case could serve as a pivotal moment in the regulatory crackdown on the crypto sector and send a strong signal to market participants about legal accountability [2].

Meanwhile, large cryptocurrency holders, commonly referred to as “whales,” have secured $6.2 million in profits from recent Bitcoin and Ethereum trades. This development highlights the strategic advantages and market timing of major participants, who often benefit from price swings caused by broader market sentiment or macroeconomic events. The profits underscore the disparity between retail and institutional participation in the crypto space [3].

Market analysts have raised concerns about a potential “double top” pattern forming for Bitcoin. This bearish technical signal occurs when the price peaks twice at a similar level before declining. Bitcoin has struggled to break above $122K twice, leading some traders to warn that a breakdown could drive the price toward $100K, particularly if the upcoming U.S. inflation data disappoints market expectations [4]. The confirmation of such a pattern would likely trigger further selling pressure and reinforce the bearish narrative in the short term.

Sources:

[1] Title: "Crypto Slips Ahead of U.S. Inflation Report" (https://coinmarketcap.com/community/articles/689b2352b37c031160651906/)