Bitcoin Poised to Shatter Record High as Markets Eye Inflation Data

Bitcoin is on the verge of surpassing its historic peak this month, buoyed by improving macroeconomic sentiment that’s lifting risk assets across the board. The top cryptocurrency has climbed 4.5% since Saturday’s open, erasing last week’s dip and pushing prices just shy of the July 14 record of $122,838.

Derivatives data shows open interest has risen by 7,834 BTC, with a surge in both spot and perpetual trading volumes. Analysts note the rally has been driven largely by speculative long positions, amplified by last week’s technology stock gains and growing investor confidence in U.S. interest rate cuts.

All eyes now turn to Tuesday’s release of the July Consumer Price Index, where economists anticipate a 10 basis point rise in annual inflation to 2.8%. A softer reading could strengthen the case for the Federal Reserve to begin cutting rates as early as September—conditions historically favorable for crypto markets.

However, some traders are hedging their bets, with increased demand for put options signaling caution over the possibility of hotter-than-expected inflation. Such an outcome could trigger a sharp reversal and spark what some analysts warn could be a brief “mini panic” in the market.