Bitcoin News Today: Bitcoin Ethereum Await Key CPI Data for Price Direction

Bitcoin and Ethereum are entering a pivotal phase as market participants await the release of the U.S. Consumer Price Index (CPI) on August 12. The data is expected to play a significant role in shaping the near-term price action for both cryptocurrencies. Bitcoin recently tested resistance at $122,000 before retreating to consolidate around $119,000, while Ethereum surged to $4,300—the highest level since 2021—before settling into a key consolidation range [1].

The pullback in Bitcoin’s price has not shaken the broader bullish sentiment, but traders are increasingly adopting a cautious stance. The release of CPI data will provide critical insight into the trajectory of U.S. inflation and, by extension, the likelihood of a Federal Reserve rate cut in September. Analysts suggest that softer-than-expected CPI figures could strengthen the case for a rate cut, which in turn might boost risk-on sentiment and benefit cryptocurrencies [2]. Conversely, a hotter-than-anticipated report could weigh on Bitcoin and Ethereum by reinforcing expectations of tighter monetary policy.

Ethereum’s recent price action has drawn particular attention, especially as it consolidates within a symmetrical triangle pattern around $3,620–$3,700 on the 4-hour chart. A breakout above $3,700 could push the price toward key resistance levels at $3,850, $3,900, or even $4,100, while a breakdown below $3,580–$3,600 could lead to a pullback toward $3,500 or $3,374 [4]. The renewed strength in Ethereum is being attributed to growing demand within its DeFi and Layer-2 ecosystems, reinforcing its position as a key player in the crypto space [1].

Market dynamics are also being influenced by broader U.S. economic data, which indirectly affects crypto prices through its impact on the U.S. dollar and global risk appetite. Strong CPI readings could bolster the dollar and place downward pressure on Bitcoin. On the other hand, weaker-than-expected data might lead to a “risk-on” environment, benefiting high-beta assets like cryptocurrencies [5]. Institutional interest remains a key driver, with spot Bitcoin ETFs and large fund inflows seen as potential catalysts for pushing BTC toward or beyond its all-time high [1].

Analysts have also noted the possibility of Ethereum outpacing Bitcoin in the near term, given its current momentum and ecosystem developments. However, such forecasts should be treated with caution, as macroeconomic signals and investor sentiment can shift rapidly [7].

For now, the crypto market remains in a wait-and-see mode, with the CPI data serving as a key inflection point. The outcome could either reinforce bullish momentum or trigger a period of retesting and consolidation. As traders monitor the data and subsequent Fed policy signals, the next major price move for Bitcoin and Ethereum may hinge on the outcome of this critical event.

Source:

[1] Bitcoin and Ethereum Brace for CPI Data After Price Pullback (https://coindoo.com/bitcoin-and-ethereum-brace-for-cpi-data-after-price-pullback/)

[2] Bitcoin trades in key range ahead of 2025 CPI data release (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-trades-key-range-2025-cpi-data-release-2508/)

[4] Ethereum News Today (https://www.ainvest.com/news/ethereum-news-today-ethereum-consolidates-3-620-3-700-breakout-looms-stellar-faces-bearish-signals-death-cross-2-hour-chart-cold-wallet-presale-hits-5-9m-4-900-potential-return-2508/)

[5] Week Ahead: How Upcoming US Data Could Shape Dollar ... (https://www.investing.com/analysis/week-ahead-how-upcoming-us-data-could-shape-dollar-gold-oil-and-bitcoin-200665088/)

[7] Ethereum's price has risen above $4300 and may overtake ... (https://www.mitrade.com/au/insights/news/live-news/article-3-1027604-20250811)