Bitcoin's Pre-Inflation Data Dip: A Growing Trend

Bitcoin traders have noticed a recurring pattern where the crypto market experiences a short-term dip in price ahead of US inflation data releases, such as the Consumer Price Index (CPI) or Producer Price Index (PPI). Following the release, Bitcoin often rallies, regardless of whether the data meets, beats, or misses expectations. This trend is attributed to traders hedging against potential bad news and reducing risk exposure before economic uncertainty.

Bitcoin traders have observed a recurring pattern where the crypto market experiences short-term price dips before significant US inflation data releases, such as the Consumer Price Index (CPI) or Producer Price Index (PPI). Following the data releases, Bitcoin often rallies, regardless of whether the data meets, beats, or misses expectations. This trend is attributed to traders hedging against potential bad news and reducing risk exposure before economic uncertainty.

The recent overnight surge of Bitcoin above $122,000 was met with heavy selling, pushing prices below $119,000 later in the US session [1]. Ether held above $4,200, while major altcoins like Solana (SOL), dogecoin (DOGE), and Sui's native token (SUI) declined by 3%-4%. Analysts suggest that Bitcoin's momentum will depend on upcoming US CPI and PPI inflation data, with potential for increased volatility [1].

The Bitcoin market has been closely watching the CME gap, with $117,000 as a potential retracement target. Upcoming CPI and PPI data releases could significantly affect market dynamics. Traders are optimistic but cautious, watching for the CME gap at $117,000 as a critical support level [2]. The release of the Consumer Price Index (CPI) and Producer Price Index (PPI) this week is crucial, as these will provide insights into potential Federal Reserve actions that could impact Bitcoin prices [2].

Bitcoin traders assess the $122,000 weekend surge, with traders eyeing critical economic data this week. As the market navigates potential dips and surges, staying informed will be key to making strategic decisions. Bitcoin has surged to $122,000, signaling strong bullish sentiment in the market. Traders are closely watching the CME gap, with $117,000 as a potential retracement target. Key economic data releases this week could significantly influence Bitcoin’s price trajectory [2].

References:
[1] https://www.coindesk.com/markets/2025/08/11/bitcoin-pulls-back-to-usd119k-as-looming-inflation-data-could-bring-price-swings
[2] https://en.coinotag.com/bitcoin-price-action-targets-117000-dip-amid-new-all-time-high-discussions-and-market-sentiment/