Bitcoin News Today: Bitcoin nears $122,000 as crypto rallies ahead of key CPI data release

Bitcoin has surged above $122,000, nearing its all-time high, while Ethereum has risen more than 21% in recent days, reaching $4,300 [1]. This sharp rally in the leading cryptocurrencies has occurred ahead of the upcoming release of the U.S. Consumer Price Index (CPI) data, a key economic indicator that traders anticipate could significantly influence market sentiment and asset valuations [2]. Analysts suggest that a softer-than-expected CPI report may bolster crypto markets by reinforcing expectations of lower interest rates and improved liquidity [3].

The Bitcoin rally has been particularly aggressive, with some platforms reporting a 3.2% daily increase in the past 24 hours, bringing the digital asset within 1% of its historical peak [4]. Meanwhile, Ethereum has demonstrated strong momentum, climbing to a three-year high and approaching its previous peak of $4,878 [5]. The gains in both assets reflect heightened speculative interest and optimism in the broader crypto space, especially among those looking to position for potential macroeconomic shifts.

Market participants are closely watching the upcoming CPI report, scheduled for Tuesday, as it could act as a turning point for Bitcoin's path to a new all-time high [6]. A lower-than-expected inflation reading could reduce pressure on central banks to maintain high interest rates, which would likely benefit risk assets like cryptocurrencies. Some analysts and traders, including Arthur Hayes, former CEO of BitMEX, have suggested that lower CPI readings tend to support both stocks and crypto, with liquidity being a key driver of price action [7].

The surge has also coincided with increased activity in crypto ETFs and options markets, with positioning reflecting a bullish bias among traders. Positive regulatory developments in the U.S. have further contributed to the market's upward trajectory, particularly for Bitcoin and Ethereum [8]. According to one report, 91.5% of participants are betting on a rate cut in September, reinforcing the risk-on sentiment across financial markets and contributing to the current rally [9].

Investors remain cautiously optimistic as they await the CPI release, with expectations that the data could either confirm the bullish narrative or introduce short-term volatility. While the crypto market has shown resilience in recent weeks, the broader macroeconomic environment remains a critical factor. As Bitcoin approaches a potential historic price level, the outcome of the CPI report will likely determine the next phase of market direction.

[1] https://99bitcoins.com/news/altcoins/live-btc-holds-steady-above-17k-eth-tops-4-2k-anticipates-new-ath-best-crypto-to-buy/

[2] https://www.mitrade.com/au/insights/news/live-news/article-8-1028049-20250811

[3] https://www.binance.com/en/square/post/28171****61226

[5] https://m.economictimes.com/crypto-news-today-live-11-aug-2025/liveblog/123223005.cms

[7] https://coinmarketcap.com/community/articles/689a8e7e1f3a5b4dc5e17fa3/