Bitcoin News Today: Bitcoin traders target $137K as US CPI boosts Fed rate cut odds to 93.9%

Generated by AI AgentCoin World
Tuesday, Aug 12, 2025 6:53 pm ET1min read
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Aime RobotAime Summary

- Bitcoin's price is increasingly linked to U.S. inflation data and Fed rate cut expectations, with July CPI figures pushing September cut odds to 93.9%.

- Traders now target $137,000 for Bitcoin as cooling inflation reduces holding costs, though core CPI at 3.1% signals lingering inflationary pressures.

- Technical analysis shows bullish patterns near $120,000, with key support at $117,650-$115,650 and potential upside toward $130,000 if resistance breaks.

- Upcoming PPI data and broader market conditions could reinforce bullish momentum or trigger corrections, with downside risks testing $95,000 levels.

Bitcoin's price trajectory has become increasingly tied to U.S. inflation data and the likelihood of Federal Reserve rate cuts, as recent figures have bolstered market expectations for monetary easing. Traders are now targeting a new all-time high of $137,000 for

Bitcoin
, driven by the July U.S. CPI report, which showed year-over-year inflation holding steady at 2.7%, below the 2.8% forecast. This data has pushed the probability of a Fed rate cut in September to 93.9%, according to the CME FedWatch tool [1].

The unchanged CPI figure, along with a 0.2% monthly increase in the overall index (compared to 0.3% in June), has contributed to a more favorable macroeconomic environment for risk assets like Bitcoin. With inflation cooling, the case for monetary easing is strengthening, reducing the opportunity cost of holding Bitcoin and potentially attracting new capital to the market [1].

Despite the positive backdrop, core CPI—which excludes food and energy—remained at 3.1% annually, in line with expectations. This suggests that underlying inflationary pressures persist, meaning the Fed may still require additional data before acting decisively. However, next week’s Producer Price Index (PPI) and Core PPI reports could serve as key indicators for further bullish momentum. A softer-than-expected read would likely reinforce market optimism and further reduce rate hike expectations [1].

On the price action front, Bitcoin has shown signs of resilience. After surging to $122,190 over the weekend, it dipped 3% to $118,500, failing to hold above $120,000. However, a rebound to $119,500 followed the CPI data release, indicating that buyers are stepping in near key levels. A decisive close above $119,982 is seen as critical for confirming immediate upside momentum, with a move above $120,000 representing a historic milestone [1].

Technically, a bullish flag pattern has recently broken out to the upside on the daily chart. The current pullback is being viewed as a retest before a potential continuation toward $130,000. Analysts such as Titan of Crypto have also pointed to a $137,000 price target based on a descending trendline breakout observed on Sunday [1]. That said, the failure to reclaim $120,000 could invite short-term selling pressure, with key support levels between $117,650 and $115,650, coinciding with the weekend's CME gap, presenting critical areas for traders to monitor [1].

Further downward risk remains, as the cryptocurrency is not immune to a correction if the broader market turns bearish. A deeper drop could test levels as low as $95,000, according to Cointelegraph [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)