Bitcoin News Today: Bitcoin price target jumps to $137,000 as Fed rate cut odds hit 93.9%

Bitcoin’s price target has climbed to $137,000 amid growing expectations of a Federal Reserve rate cut in the coming months. The recent release of July U.S. consumer price index (CPI) data, which showed inflation remaining steady at 2.7% year-over-year, has bolstered market confidence that the Fed may ease monetary policy. As a result, the probability of a rate cut in September has surged to 93.9%, according to CME FedWatch [1]. This shift has been interpreted as a positive catalyst for Bitcoin, reducing the opportunity cost of holding the asset and potentially increasing demand [2].

Analysts have highlighted that Bitcoin’s recent rebound to $119,500 reflects market optimism, but a sustained close above $119,982 is necessary to confirm a stronger bullish trend. Technical indicators suggest that the $120,000 level is critical; if maintained, the cryptocurrency could target $130,000 and eventually $137,000. These price levels are now seen as realistic by traders who believe the Fed’s anticipated easing will further support Bitcoin’s rally [3].

The technical outlook is also encouraging. A bullish flag pattern on the daily chart has recently broken to the upside, with the current pullback potentially signaling a retest before moving toward the primary target. Analyst Titan of Crypto has similarly projected a breakout to $137,000 based on a descending trendline breakout observed recently [4]. However, failure to reclaim $120,000 could invite short-term downward pressure, with key support levels currently identified between $117,650 and $115,650. This zone also overlaps with the CME gap formed over the weekend, making it a critical area for traders to monitor [1].

While the core CPI remains at 3.1%, indicating that underlying inflationary pressures persist, the broader macroeconomic environment continues to favor Bitcoin. The market is closely watching upcoming economic indicators such as the Producer Price Index (PPI) and Core PPI, both of which could influence the Fed’s policy direction and, consequently, Bitcoin’s performance [3]. A softer-than-expected PPI could reinforce the case for a rate cut, further boosting risk-on sentiment and Bitcoin demand.

Bitcoin’s role as an inflation hedge and store of value has become increasingly prominent as the U.S. economy transitions from a high-inflation environment to a more stable one. This evolving perception has attracted both institutional and retail investors, who are positioning for potential gains amid expectations of a more accommodative monetary policy. As the Fed’s response to the latest CPI data is closely scrutinized, the market remains in a consolidation phase until the $119,982 level is decisively breached [4].

In summary, Bitcoin’s price trajectory is closely tied to the Federal Reserve’s policy outlook. With traders adjusting their price targets in light of the latest economic data, the cryptocurrency is poised for a potential breakout should the Fed proceed with a rate cut. The convergence of favorable macroeconomic conditions, technical indicators, and market sentiment suggests that Bitcoin could test levels well above $130,000, with $137,000 emerging as a prominent price target for the near term.

Sources:

[1] title1: Bitcoin traders target $137K as US CPI boosts Fed rate cut odds, url1: https://www.ainvest.com/news/bitcoin-news-today-bitcoin-traders-target-137k-cpi-boosts-fed-rate-cut-odds-93-9-2508/

[2] title2: Bitcoin's Prospects Brighten Amid Steady U.S. Inflation and Rate Cut Speculation, url2: https://www.binance.com/en/square/post/08-12-2025-bitcoin-s-prospects-brighten-amid-steady-u-s-inflation-and-rate-cut-speculation-28235786625249

[3] title3: Bitcoin surges past $122K as US CPI data fuels 94% Fed rate cut odds, url3: https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-122k-cpi-data-fuels-94-fed-rate-cut-odds-2508/

[4] title4: Bitcoin bulls lift their price target to $137,000 as odds of a Federal Reserve rate cut increase, url4: https://cointelegraph.com/