Bitcoin News Today: Bitcoin surges past $122K as US CPI data fuels 94% Fed rate cut odds

Bitcoin price surged past $122,000 on Monday, driven by optimism around the July U.S. Consumer Price Index (CPI) data. The report showed year-over-year inflation at 2.7%, matching June’s reading and falling below the 2.8% forecast. Core CPI, excluding food and energy, rose 3.1% annually, in line with expectations. On a monthly basis, overall CPI rose 0.2%, easing from June’s 0.3%, while core CPI climbed 0.3%, up from 0.2% in the prior month [1]. These figures reinforced market expectations for a Federal Reserve rate cut, with CME FedWatch pricing in a 93.9% probability of a cut at the September meeting [1].

The inflation data is seen as a positive development for Bitcoin, which benefits from a lower interest rate environment. Reduced rates lower the opportunity cost of holding non-yielding assets like BTC, potentially drawing fresh capital into the market. Analysts have pointed out that the current macroeconomic backdrop supports a continuation of Bitcoin’s bullish trend, provided core inflation continues to moderate [1].

Technically, Bitcoin has seen a mixed response to the CPI release. After hitting a peak of $122,190 on Monday, the price pulled back to $118,500. However, BTC has since rebounded to $119,500, with a decisive close above $119,982 required to confirm further upside momentum. A sustained daily close above $120,000, which would be a historic first, could trigger a new wave of buying interest [1].

Analysts are eyeing higher price targets. Titan of Crypto highlighted a descending trendline breakout observed on Sunday, projecting a potential move toward $137,000. Additionally, a bullish flag pattern on the daily chart suggests the current pullback could serve as a retest before a continuation toward $130,000 [1]. However, failure to reclaim $120,000 could invite short-term selling pressure. Immediate support is located between $117,650 and $115,650, a key level that also coincides with a weekend CME gap. A deeper correction could test $95,000 [1].

Looking ahead, next week’s Producer Price Index (PPI) and core PPI data may play a pivotal role in shaping Bitcoin’s near-term trajectory. A softer-than-expected print could confirm a more favorable macroeconomic environment, reinforcing the case for a Federal Reserve rate cut and boosting demand for risk assets like Bitcoin [1].

Source: [1] Bitcoin traders target $137K as US CPI print raises Fed rate cut odds to 94% (https://cointelegraph.com/news/bitcoin-traders-target-137k-as-us-cpi-print-raises-fed-rate-cut-odds-to-94)