Bitcoin Dropped Beneath $120K, These Cryptocurrencies Plummeted More: Market Analysis
The recent US Consumer Price Index (CPI) report for July 2025, released on August 12, showed a 0.2% monthly increase and a 2.7% annual inflation rate. While this was slightly below some market expectations, it has generally exerted a moderate impact on Bitcoin and the broader crypto market volatility.
The July CPI data indicated a steady inflation trend, contributing to uncertainty about future Federal Reserve monetary policy moves. As Bitcoin and cryptocurrencies are sensitive to macroeconomic indicators that influence US monetary policy and market risk appetite, this report often leads to short-term volatility spikes. In this case, the moderate inflation release led to increased but contained volatility in Bitcoin prices and the broader crypto market.
Bitcoin's market capitalization reached almost $2.5 trillion on August 11, but has since retreated to approximately $2.36 trillion. The digital currency briefly surged past $122,000 on the same day, but its price has since declined over the past 24 hours, currently trading just south of $119,000. BTC remains the sixth-largest asset in the world.
The total crypto market capitalization retreated to $4.04 trillion, representing a 2% decline from yesterday's figure. Other notable movements include Story (IP) tumbling by 16% in the last 24 hours, and Pi Network (PI) declining by 7%. On the other hand, Bitcoin Cash (BCH), TRON (TRX), and Toncoin (TON) posted gains over the last 24 hours.
Ethereum (ETH) currently stands at over $4,300, representing a 45% increase on a monthly scale. Meanwhile, Bitcoin's dominance against the altcoins slightly increased to around 58.6%.
The Federal Reserve closely monitors the data from the US CPI report, and its decision to cut interest rates next month could be affected by this report. Traders remain attentive to upcoming economic data releases and Fed guidance to assess how these will impact crypto market dynamics going forward.
Broader crypto market volatility is influenced by other factors as well, including regulatory developments, market liquidity, and investor sentiment beyond economic data. The CPI report is just one component but remains closely watched by crypto traders for its indirect signaling of Federal Reserve policy and inflation expectations.
In sum, the current US CPI report has caused moderate increases in Bitcoin and crypto market volatility, reflecting balanced market sentiment amid continued inflation concerns but no major shocks. Traders are keeping a close eye on future economic data and Fed guidance to navigate the crypto market landscape.
[1] CoinDesk
[2] Bloomberg
[3] Reuters
[4] CNBC
[5] Financial Times
- Traders are closely monitoring the CoinDesk, Bloomberg, Reuters, CNBC, and Financial Times for updates on the crypto market, given the recent impact of the US CPI report on Bitcoin and altcoins.
- Bitcoin's dominance against altcoins slightly increased, with Bitcoin currently trading just south of $119,000 and Ethereum standing over $4,300, representing a 45% increase on a monthly scale.
- The Federal Reserve's decision to cut interest rates next month could be affected by the US CPI report, and heightened attention is being paid to upcoming economic data releases and Fed guidance to assess their impact on the trading of cryptocurrencies like Bitcoin, Ethereum, and altcoins.
- Broader crypto market volatility is influenced by factors such as regulatory developments, market liquidity, and investor sentiment, in addition to economic data like the US CPI report, which indirectly signals the Federal Reserve's policy and inflation expectations.
