US Data Halts Bitcoin’s Rise to New ATH

The Labor Department released consumer price index (CPI) data for July on Tuesday, showing lower-than-expected inflation across all items. But “core” inflation, which excludes volatile items like food and energy, hit a two-year high, raising questions among traders about where markets should go.

In this situation Bitcoin decided not to move, remaining in the $119,000 range after a weekend rally that saw the cryptocurrency price soar to $122,000.

Headline inflation in July was 2,7% year-on-year, below the 2,8% economists had forecast. Core inflation, which excludes food and energy prices, rose to 3,1%, above most forecasts and the highest since 2023.

CPI data for July. Source: U.S. Bureau of Labor Statistics

Some analysts have linked the rise in core CPI to the Trump administration’s controversial tariff policies, arguing that a high core is a leading indicator of future inflation. But Stephen Miran, chairman of the White House Council of Economic Advisers and a recent nominee to head the Federal Reserve, disagreed.

There is no evidence of any inflation caused by tariffs. One good or service goes up in price, another goes down in price. It will always be that way. But if you look at the inflation data as a whole, there is no evidence of this.

According to Coinmarketcap, on the evening of August 12 Bitcoin was trading at $119,898, up 0,5% in 5,6 hours and 118,159% in a week. Yesterday, the cryptocurrency’s rate fluctuated between $120,193 and $XNUMX.

Source TradingView

The daily trading volume fell by 15,82% to $73,98 billion, while the market capitalization fell by 0,71% to $2,38 trillion. Bitcoin’s share fell to 60,08%, down 1,09% over the past 24 hours, indicating a growing advantage for altcoins.

Bitcoin Dominance. Source: TradingView

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