Bitcoin News Today: Bitcoin Surges Past $124K Then Dips 5% After Weak PPI and Bessent's Comments

Bitcoin's price surged to a new all-time high of $124,533 but quickly lost momentum, tumbling below $120,000 following a disappointing U.S. Producer Price Index (PPI) report that highlighted unexpected wholesale inflation increases, undermining expectations for a near-term rate cut [1]. The market reaction intensified after U.S. Treasury Secretary Scott Bessent ruled out further Bitcoin purchases, contributing to a nearly 5% drop in BTC’s value over the subsequent session [1]. The cryptocurrency was trading around $117,699, with sellers maintaining control amid the bearish sentiment [1].

BlackRock’s crypto portfolio recently surpassed $100 billion, reaching $104 billion as of August 14, with Bitcoin comprising the majority of the holdings at $89.27 billion—equivalent to 743,310 BTC—according to a Finbold analysis based on blockchain data from Arkham Intelligence [1]. This represents a significant increase of $49.15 billion from the beginning of 2025 [1].

Meanwhile, Block, a fintech firm, introduced a new modular Bitcoin mining system called Proto Rig, designed to extend the lifespan of mining rigs to up to ten years and reduce operational costs by 15% to 20%. The system allows for individual hashboard upgrades, addressing the inefficiencies and high maintenance costs of current mining hardware [1].

Technical indicators suggest that Bitcoin may be forming a top, with analyst Captain Faibik highlighting signs such as the 9th "TD Sell Candle," bearish divergence in the daily RSI, and a rising wedge pattern. These signals imply that a bearish reversal could be imminent, and late buyers may face heightened risks of being trapped in long positions [1]. Additionally, Bitcoin’s funding rate indicates increased long-position activity, although not at levels seen in previous overheated cycles [1]. The Short-Term Holder (STH) Spent Output Profit Ratio (SOPR) also reveals minimal profit-taking, suggesting that the market is still consolidating [1].

Bitcoin’s price action over the past week has been volatile. On Friday, BTC fell over 2% to $113,365, and further declines followed on Saturday. However, it rebounded on Sunday, regaining some ground. The price continued to fluctuate throughout the week, reaching an intraday high of $122,319 before retreating to settle below $118,000. On Wednesday, BTC surged nearly 3%, settling at $123,365, and reached a new high of $124,533 before collapsing by nearly 5% in the subsequent session [1].

Sources:

[1] Bitcoin Price Analysis: BTC Loses Steam After Push Above $124,000 — https://bitzo.com/2025/08/bitcoin-price-analysis-btc-loses-steam-after-push-above-124000