Bitcoin's value nears its peak historic price, with traders on edge over forthcoming pivotal inflation stats.
In the world of cryptocurrency, Bitcoin is making a significant comeback, with its price just shy of its previous all-time highs near $122,800–$124,000. The digital currency has surged by approximately 3.6% in the last 24 hours, marking a resurgence from recent consolidation phases.
This surge in Bitcoin's price is not happening in a vacuum. Open interest in Bitcoin derivatives has increased by around 7,800 BTC, indicating a rise in speculative and leveraged long positions. This increased open interest typically underpins bullish momentum. Moreover, the number of daily new Bitcoin addresses has reached a one-year high of over 364,000, reflecting growing network usage and investor participation.
The upcoming U.S. Consumer Price Index (CPI) report, due next Tuesday, is a key focus for markets. Economists anticipate a 0.3% increase, signalling persistent inflationary pressure. This inflation data could influence Federal Reserve rate cut decisions, which in turn impact Bitcoin prices significantly. A softer-than-expected print could bolster expectations for a Fed rate cut as early as September.
The correlation between Bitcoin and technology stocks is also worth noting. Last week's rally in technology stocks has seen Bitcoin's price climb in response. This correlation is due to their growth-oriented and risk-on nature, especially in environments of monetary easing and inflation concerns.
Analysts are optimistic about Bitcoin's near-term outlook, with the reappearance of the Golden Cross (a bullish moving average crossover) on Bitcoin’s charts seen as a positive technical signal. They expect Bitcoin to maintain support above $110,000–$112,000 and potentially rally in the months ahead, with forecasts ranging from $130,000 to $150,000 by the end of 2025.
Sean Dawson, head of research at Dervie, shares this optimism, stating that crypto typically performs very well in low-rate environment conditions. Dawson also noted that some traders are positioning defensively due to the potential for a "mini panic" and a "sharp downturn" if the inflation data exceeds expectations.
The current outlook for Bitcoin in August 2025 is broadly bullish, supported by rising open interest, strong network adoption, and expectations of favorable macroeconomic data, including the upcoming U.S. Consumer Price Index report. With investor sentiment improving and a broader market appetite for crypto assets, it seems that the road ahead for Bitcoin is paved with optimism.
- The digital currency, Bitcoin, has experienced a significant surge in its price, approaching its previous all-time highs, which is happening amidst an increase in open interest in Bitcoin derivatives.
- Sean Dawson, head of research at Dervie, shares the optimistic outlook for Bitcoin, stating that it typically performs well in low-rate environment conditions.
- In the world of cryptocurrency, Bitcoin is making a comeback with its price just shy of its previous all-time highs, and analysts expect it to maintain support above $110,000–$112,000 and potentially rally in the months ahead.
- The correlation between Bitcoin and technology stocks is significant, as last week's rally in technology stocks has seen Bitcoin's price climb in response, due to their growth-oriented and risk-on nature.
