Bitcoin News Today: Bitcoin hovers below $120,000 as market awaits U.S. inflation report

Bitcoin remains in a tight consolidation phase just below the $120,000 resistance level as traders await the U.S. inflation report, which is expected to provide key insight into the Federal Reserve’s monetary policy trajectory [1]. Over the past few days, BTC has shown a volatile pattern, with prices dipping back to $118,630 after touching intraday highs near $122,000 [1]. On Tuesday, the cryptocurrency settled around $118,900, having failed to close above the psychologically significant $120,000 threshold [2].

The uncertainty surrounding the upcoming Consumer Price Index (CPI) data has led to a cautious mood in the market. A weaker-than-expected inflation reading could reinforce expectations of a rate cut by the Fed in September, potentially boosting Bitcoin’s appeal as an inflation-hedging asset. Conversely, a stronger-than-anticipated report could delay rate easing, leading to renewed selling pressure in the crypto market [2].

On-chain metrics suggest sustained bullish momentum in Bitcoin’s ecosystem. The number of active Bitcoin addresses has surged by 15% over the past ten days, reaching a 9-month high of 367,349 [1]. Long-term holders have also reduced selling activity, indicating a growing sense of confidence in the market. After a period of aggressive profit-taking in July, the frequency of large daily profits has declined, suggesting that selling pressure is easing [1].

Corporate interest in Bitcoin remains robust. Japanese firm Metaplanet Inc. recently purchased 518 additional bitcoins for $61.4 million, at an average price of $118,519 [1]. This brings the company’s total holdings to 118,113 coins, valued at approximately $1.85 billion, making it the sixth-largest corporate holder of Bitcoin globally. The company’s acquisition strategy mirrors that of MicroStrategy, which has also used equity offerings to accumulate digital assets [1].

The broader crypto market mirrored Bitcoin’s performance. Ethereum fell 0.6% to $4,281.12, while altcoins such as XRP, Solana, and Cardano all declined between 4.1% and 6% [1]. Memecoins also experienced losses, with Dogecoin dropping 6.3% and $TRUMP falling 5.2% [1].

Looking ahead, the near-term direction of Bitcoin will likely depend on the outcome of the inflation report. If the CPI data confirms a slowdown in price growth, it could unlock new liquidity in financial markets, potentially fueling further gains in Bitcoin and other speculative assets. A failure to break above $120,000, however, may result in a retest of key support levels below $115,000 [4].

Source:

[1] Blockonomi - [https://blockonomi.com/bitcoin-btc-price-hovers-below-120000-resistance-level-before-inflation-report/](https://blockonomi.com/bitcoin-btc-price-hovers-below-120000-resistance-level-before-inflation-report/)

[2] Mitrade - [https://www.mitrade.com/insights/crypto-analysis/bitcoin/fxstreet-BTCUSD-202508121725](https://www.mitrade.com/insights/crypto-analysis/bitcoin/fxstreet-BTCUSD-202508121725)

[4] AInvest - [https://www.ainvest.com/news/bitcoin-volatility-surge-looming-breakout-timing-storm-strategic-positioning-2508/](https://www.ainvest.com/news/bitcoin-volatility-surge-looming-breakout-timing-storm-strategic-positioning-2508/)