Bitcoin Retreats After Reaching New Highs, CPI Data Becomes a Key Variable for Future Market Movements, Potentially Filling the CME Gap

Bitcoin Price Retreats After Reaching New Highs

The price of Bitcoin surged to new highs on Monday before facing profit-taking, with the price retreating to around $118,000. This pullback represents a 2.8% drop from the intraday peak of $122,200. Ethereum remained steady above $4,200, while major altcoins such as Solana, Dogecoin, and Sui fell by approximately 3% to 4%.

CoinDesk senior analyst James Van Straten pointed out that the surge in Bitcoin over the weekend created a price gap in the CME futures market (with a closing price of $117,430 on Friday and an opening price of $119,000 on Monday). Historical experience suggests that Bitcoin may pull back to “fill” this gap.

Additionally, the U.S. Consumer Price Index (CPI) report for July, to be released tonight, could become the market catalyst most closely watched by traders, followed by the Producer Price Index (PPI) data.

Bitfinex analysts stated in their market report on Monday that whether Bitcoin can maintain its upward momentum will likely depend on these U.S. macroeconomic data points. “As market sensitivity to macro events is at a high level, traders should be prepared for increased volatility and a potential pullback to $110,000 in the short term.”

The analysts added, “We believe that price oscillation between high and low ranges will persist, as prices continue to fluctuate around the cost basis of new buyers, amplifying market sentiment during the release of key macro data.”