Bitcoin News Today: Bitcoin, Ethereum surge to record highs ahead of key U.S. CPI report

Bitcoin and Ethereum surged over the weekend, with BTC reaching $122,000 and ETH hitting $4,300, marking a sharp reversal from recent losses and bringing all-time highs back into focus. The rally has drawn attention to the upcoming U.S. CPI report, which traders believe could determine whether the momentum continues or faces a temporary pause [1].

The market’s recent performance mirrors gains in U.S. equities, with both asset classes showing increased correlation since mid-July. While stock indexes have rebounded from a payrolls-driven decline last week, the broader economic picture remains mixed, with new tariffs and macroeconomic uncertainties still in play [1].

Economists are forecasting a slight rise in annual inflation, expecting the CPI to increase by 10 basis points to 2.8% [1]. A reading below this level could reinforce expectations for a September Federal Reserve rate cut, a scenario already largely priced in by markets following dovish remarks from Fed officials. A higher-than-expected reading, on the other hand, may slow momentum across risk assets, including crypto.

Market positioning ahead of the CPI report suggests a split outlook. Traders are hedging downside risks with options in the $115K–$118K BTC range, while the covering of short calls indicates reduced expectations of a deeper pullback. Volatility is expected to remain high until the data is released, with potential compression if Bitcoin breaks decisively above key resistance levels [1].

Despite the rally, some profit-taking is anticipated as Bitcoin tests critical price levels. However, the market has so far absorbed large-holder sell-offs without breaking the overall uptrend, supporting a structurally bullish view as mid-August approaches.

Key macroeconomic events this week include the U.S. CPI release on August 12, followed by PPI and jobless claims on August 14, and retail sales on August 15 [1].

Source: [1] Crypto Rallies Into Key Inflation Report as Markets Eye US CPI for Next Move (https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=crypto-rallies-into-key-inflation-report-as-markets-eye-us-cpi-for-next-move)