Bitcoin News Today: Bitcoin Nears Record High as Ethereum Sees $1B ETF Inflows

The cryptocurrency market is currently at a critical juncture as Bitcoin approaches all-time highs and Ethereum benefits from record inflows into its ETFs. The broader altcoin market remains on the sidelines, waiting for a potential breakout. In the coming days, key macroeconomic data and Federal Reserve commentary could significantly influence investor sentiment and price trajectories across the digital asset space.

Bitcoin surged to a record high of $122,000 recently before retreating to approximately $119,000. Although some profit-taking has emerged, the asset remains close to its peak levels, reflecting robust demand. Analysts are closely watching for a clean breakout above the $122,000 threshold, which could open the door for further gains. However, the market remains sensitive to inflation data and central bank guidance, both of which could dictate whether Bitcoin consolidates or continues its upward trend [1].

Ethereum has attracted institutional interest, with over $1 billion in single-day inflows to spot ETH ETFs—marking the highest ever recorded. BlackRock and Fidelity have been at the forefront of this buying spree, signaling that Ethereum is gaining recognition as an institutional-grade asset. With prices breaking key resistance levels, analysts are now looking at $7,000 as a potential target if the momentum holds [1].

In contrast, altcoins remain in a holding pattern. Typically, strong Bitcoin rallies are followed by surges in smaller-cap assets. However, Bitcoin's dominance has delayed a broad rotation into altcoins. That said, Ethereum’s growing traction and improving DeFi sentiment may eventually trigger a shift in investor focus, particularly if Bitcoin consolidates above critical support levels [1].

Macro events will play a pivotal role in shaping the near-term outlook. The U.S. Consumer Price Index (CPI) for July is expected to show an annual increase of 2.8%, slightly above June’s 2.7%. A higher-than-anticipated CPI reading could strengthen the U.S. dollar and put downward pressure on risk assets like crypto. Conversely, a softer number could reinforce expectations of a September rate cut by the Federal Reserve, potentially boosting crypto prices [1].

Core CPI, which excludes volatile food and energy prices, is projected to remain at 3.1% year-over-year. Analysts suggest that recent U.S. tariffs will influence July’s inflation data, with goods inflation being the primary driver [1].

The Producer Price Index (PPI), to be released on Thursday, offers another perspective on inflation. As a measure of production-level costs, it can signal potential shifts in consumer prices. A strong PPI reading could keep inflation concerns alive and prompt a more cautious stance from the Fed [1].

On Wednesday, the Federal Reserve will release minutes from its latest policy meeting. A hawkish tone would likely dampen crypto sentiment by suggesting that interest rates may remain elevated for longer than expected, while a dovish outlook would support the case for an imminent rate cut [1].

Thursday’s jobless claims report will also provide insight into the U.S. labor market. A strong labor market would reduce the urgency for rate cuts, while signs of slowing could bolster the case for monetary easing [1].

China’s June CPI data, scheduled for release on Wednesday, could also indirectly impact global risk appetite and crypto flows. Strong readings may support global markets, while weak inflation could raise concerns about global growth [1].

Geopolitical events, such as the Trump-Putin summit in Alaska, may introduce additional volatility. Although the direct impact on crypto is uncertain, high-stakes diplomatic talks often lead to market uncertainty. Trump’s historically favorable stance on crypto could provide a bullish tailwind if any pro-digital-asset policy comments are made [1].

In summary, the crypto market is at a pivotal moment, with Bitcoin near record highs, Ethereum seeing significant institutional interest, and altcoins poised for a potential breakout. While macroeconomic risks persist, a favorable alignment of inflation data, Fed guidance, and geopolitical developments could drive one of the strongest runs in the digital asset class in years, further reinforcing its position as a mainstream investment [1].

Source: [1] Crypto in Focus: Latest Updates and What They Mean for Investors (https://coinmarketcap.com/community/articles/689b0a9dbe4ae366a78a083f/)