Bitcoin Falls to $117,000 Ahead of US Inflation Data; Investors Take Profits After Record High
Bitcoin prices fell sharply in Asian trading on Tuesday morning as investors booked profits after the cryptocurrency hit a record high and braced for key inflation data from the United States.
As of 01:56 ET (05:56 GMT), Bitcoin was down 4.2% at $117,317.60, from an intraday high of $123,104.70 hit on Monday. The record high was largely driven by positive regulatory sentiment in the United States and inflows from institutional investors.
“Crypto Week” Event Gives Big Boost
Bitcoin’s recent rally coincides with Crypto Week, which is taking place in the US Congress since July 14. Here, lawmakers will discuss important bills such as the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance Act, policies that could reshape the regulatory environment for digital assets in the US.
These initiatives have boosted market confidence, attracting strong capital flows from institutional investors into the crypto market.
Bitcoin ETFs and record capital flows
According to data from Sosovalue, spot Bitcoin ETFs attracted more than $3.4 billion in the first half of July alone, of which $2.2 billion was recorded in just the past two weekends. This is a clear sign that big money is returning to the crypto market.
Investors monitor US CPI data
The focus now is on the US Consumer Price Index (CPI) report, which will be released later in the day. This data will provide a clearer view of the inflation situation, thereby affecting the Federal Reserve's interest rate decision, a factor that is extremely sensitive to risky assets such as cryptocurrencies.
Fed Chairman Jerome Powell has said that new tariffs could push up inflation this summer, so the Fed could continue to keep interest rates unchanged until the end of the year.
In addition, Mr. Trump has also repeatedly warned of new import tariffs ahead of the August 1 deadline, adding to the cautious sentiment in the market.
Altcoins fall following Bitcoin's correction
The decline in Bitcoin's price has led to a wave of correction in the altcoin group. Ethereum, the second-largest cryptocurrency, fell 1.1% to $2,991.80, but is still maintaining around a five-month high.
XRP down 1.7% to $2.8754
Solana down 3.1%
Cardano down 3.5%
Polygon down over 5%
In the meme coin group, Dogecoin fell sharply by 7.1%, while $TRUMP – the coin associated with Mr. Trump – fell 5.6%, despite positive news from investor Justin Sun about plans to buy another $100 million.
🔍 Summary:
Bitcoin is correcting after a historic high, amid short-term profit-taking and inflation concerns.
Institutional money remains strong, but CPI data and Fed policy will determine the next trend.
Altcoins are under pressure in unison, with many down 1–7%.