Bitcoin Smashes Past $120,000 as Investors Eye Inflation Data
Bitcoin surged beyond $120,000 for the first time ever, bringing its gains for 2025 so far to 28%.
At midday in Hong Kong, Bitcoin was trading above $121,000, according to CoinDesk data.
The cryptocurrency’s breakout follows President Donald Trump’s announcement of new 30% tariffs on goods from the European Union and Mexico, set to start on August 1. While the news stirred some volatility, it also cleared overbought signals in the market, allowing Bitcoin’s price to reset and push higher.
Market attention is now shifting to the upcoming U.S. inflation figures. Economists polled by FactSet expect the Consumer Price Index (CPI) to have risen 0.25% in June, translating to an annual increase of 2.6%. The core CPI, excluding food and energy, is projected to climb 0.3% month-over-month and 3% year-over-year.
Higher-than-expected inflation could pressure risk assets like Bitcoin if it delays the Federal Reserve’s plans for rate cuts. Nonetheless, strong institutional adoption, continued ETF inflows, and a friendlier regulatory climate are likely to keep downside risks in check.
John Glover, CEO of crypto lender Ledn, said the rally has more room to run.
“We’ve finally broken to new highs, confirming that the drop to $96,000 in June was just part of wave (ii) in the broader Wave 5 rally,” Glover said in an email.
“While I previously expected Bitcoin to reach $136,000 in early 2026, it now looks possible by year-end thanks to this momentum,” he added.
