Bitcoin News Today: Bitcoin hits all-time high of $118,000 as whale activity boosts bullish sentiment

Bitcoin’s price continues to climb, reaching a new all-time high of over $118,000, driven by renewed interest from institutional and retail investors alike [1]. This upward momentum is supported by strategic moves from large investors—often termed “whales”—who are showing renewed confidence in major digital assets such as Ethereum [2]. The return of these key market players has historically indicated improved liquidity and a more bullish sentiment, suggesting the current price action could be the start of a broader, sustained move.

However, analysts caution that the crypto market remains highly volatile, with daily price swings occasionally exceeding 20%. Investors are urged to approach with caution, treating Bitcoin more as a hedge against inflation than a speculative bet [3]. Proper risk management, including the use of profit-based capital and secure storage solutions, is emphasized as essential to navigating the unpredictable nature of crypto markets [3].

On the institutional front, recent developments at Stability DAO highlight the evolving maturity of DeFi. Following a security incident involving Credix, the DAO confirmed that 20–30% of its funds were affected and announced a compensation plan to be rolled out within two weeks [4]. This response demonstrates a growing ability among DeFi protocols to handle crises and maintain stakeholder confidence, a necessary evolution as the sector matures.

Looking ahead, the upcoming week is expected to bring key inflation data that could influence both traditional and crypto markets. The June CPI report showed a 0.2% increase in housing costs and a 1% rise in energy prices, contributing to overall inflationary pressure [1]. Tariff-related impacts are also beginning to show in household goods, with the July CPI report anticipated to provide clearer insights into inflation trends [1]. Should the data diverge from expectations, it could significantly affect risk appetite and, by extension, cryptocurrency prices.

Thursday’s Producer Price Index (PPI) and Friday’s July retail sales figures will be closely watched as leading indicators [1]. Strong retail data could support a bullish market outlook, but it might also encourage the Fed to maintain a hawkish stance, which could limit further gains in crypto. Conversely, weak data may trigger recession fears and a broader market pullback [1].

Bitcoin faces a potential short-term correction if it fails to stay above $118,500, with support levels expected between $115,800 and $116,400 [1]. A pullback in BTC could lead to panic selling in altcoins, especially if liquidity shifts away from smaller tokens. Ethereum’s performance relative to Bitcoin will also be a key indicator for altcoin activity; a resilient ETHBTC pair could signal continued strength in the broader market [1].

The convergence of macroeconomic data and investor behavior will be crucial in determining the direction of Bitcoin and the crypto market in the coming week. With the Fed’s potential rate cut in September widely anticipated, the market is in a holding pattern, waiting for clear signals from inflation and retail sales reports [1]. Bulls currently have the upper hand, but caution remains warranted as the market remains sensitive to macroeconomic shifts.

---

Source:

[1] Bitcoin soars to a new all-time high, exceeding USD 118,000. European shares see modest gains... (https://www.juliusbaer.com/en/insights/podcasts/)

[2] ETH Whale Makes Strategic Return After Massive... (https://www.bitget.com/news/detail/12560604903596)

[3] kheAI: Chat-based AI Accounting for Smarter Liquidity & ... (https://dev.to/kafechew/kheai-chat-based-ai-accounting-for-smarter-liquidity-bitcoin-treasury-with-redis-8-538l)

[4] Stability DAO Responds to Credix Attack: 20-30% of Funds... (https://www.bitget.com/news/detail/12560604904361)

[5] Wall St Week Ahead Inflation Data to Test Stocks As Some... (https://www.fastbull.com/news-detail/wall-st-week-ahead-inflation-data-to-test-4338941_0)