Bitcoin’s recent surge to near $124,000 hit a roadblock as it dropped to close the CME gap at $117,600 due to hotter-than-expected PPI inflation data and Treasury Secretary Scott Bessent’s changing stance on bitcoin purchases for a strategic reserve. This gap occurs when BTC futures on CME do not align with bitcoin’s 24/7 trading, causing price discrepancies. Although filling the gap is a common market behavior, it’s not guaranteed. In 2025, Bitcoin has achieved four all-time highs, with each peak followed by diminishing pullbacks. Notably, the recent peak of $124,000 in August has seen only a 7% pullback so far. Looking forward, the U.S. retail sales report on Friday is anticipated to show a 0.7% month-over-month increase, potentially impacting expectations for a rate cut in September. Additionally, attention is on the end of August when $12 billion in bitcoin options will expire on Deribit. In the upcoming days, various token events and releases are set to take place, including FTX distribution, Coinbase Derivatives launches, and Qubic’s blockchain halving event. Moreover, macroeconomic events like the meeting between U.S. President Donald Trump and Russian President Vladimir Putin, and GDP growth data releases from Colombia and Peru, will also influence market sentiment. In the crypto equities sector, notable stock movements include declines in Strategy (MSTR) and Circle (CRCL), while assets like AERO have shown resilience despite market pressures. Aerodrome, the decentralized exchange related to AERO, experienced a surge in trading volume following its integration with Coinbase. On the derivatives front, the open interest across major venues remains high, with bitcoin OI nearing all-time highs and options markets showing contango in IVs. Market movements indicate slight gains in BTC and ETH prices, with BTC dominance slightly decreasing. Technical analysis suggests a potential altcoin rally as bitcoin dominance falls below the historical 60% level. Overall, the crypto market remains dynamic and responsive to various economic and geopolitical factors, creating opportunities for traders and investors alike.
Bitcoin Faces Volatility Amid U.S. Inflation Concerns: Crypto Market Updates
