Bitcoin Surges Past $120K: New Record High Ahead of U.S. Inflation Data
Bitcoin Surpasses $120,000 for the First Time: A Bullish Trend Emerges
Bitcoin’s Historic Surge
Bitcoin (BTC) has achieved a significant milestone, crossing the $120,000 mark for the first time in its history. As of midday in Hong Kong, the cryptocurrency is trading at approximately $121,000, marking a year-to-date increase of 28%.
Market Dynamics and Influencing Factors
This upward movement follows President Donald Trump’s announcement of a 30% tariff on imports from the European Union and Mexico, effective August 1. The recent price fluctuations over the past 48 hours have allowed overbought indicators to reset, paving the way for a bullish trend.
Upcoming Economic Indicators
Attention now turns to the U.S. inflation data set to be released this week. Analysts anticipate a slight increase in the cost of living for June, coinciding with the ongoing trade tensions initiated by Trump’s policies. According to FactSet, the consumer price index (CPI) is expected to rise by 0.25% month-over-month, translating to an annualized growth rate of 2.6%. The core CPI, which excludes food and energy costs, is projected to increase by 0.3% monthly and 3% annually.
Potential Market Reactions
Should inflation rates accelerate, risk assets, including Bitcoin, may experience some volatility, potentially delaying anticipated interest rate cuts by the Federal Reserve. However, the strong momentum in corporate adoption of Bitcoin, along with positive regulatory developments in the U.S. and increased ETF inflows, may mitigate any downturn.
Expert Predictions
John Glover, CEO of Ledn, believes that Bitcoin’s rally is poised for further growth, with projections suggesting prices could reach $136,000 by the end of the year. Glover noted that the recent breakout to new highs confirms that the dip to $96,000 in late June was a necessary pullback within a larger upward trend.
Conclusion: A Promising Outlook for Bitcoin
Glover emphasized that while the ultimate target remains around $136,000 to conclude this bullish phase, the timeline for reaching this goal has likely shortened. Initially expected in the first quarter of 2026, the new projections suggest that Bitcoin could hit this target by the end of this year.
