- Bitcoin hit $124,100 then fell 5% after July PPI rose 0.9%.
- Ethereum near $4,500, down 4% on the day, up about 50% in a month.
- Total crypto value about $4.07T, still above $4T; CPI at 2.7%.
Bitcoin hit a new high near $124,100 on Wednesday, then fell about 5% below $118,000 after a 0.9% July PPI jump, the largest since June 2022. CPI stood at 2.7%, lifting talk of a September rate cut. Ethereum traded near $4,500, down 4% on the day and up almost 50% over a month. Total crypto value eased about 4% to $4.07T while holding above $4T, and the S&P 500 edged lower.
Bitcoin hits $124,100 then pulls back under $118,000
A new peak above $124,100 marked another all-time high before momentum cooled. From that top, the price fell roughly 5%, leaving spot levels below $118,000 into Thursday’s trade. The move followed a powerful multi-week climb and coincided with a quick swing in macro signals that influenced risk sentiment. Binance pricing framed intraday ranges and highlighted the speed of the reversal once sellers met overhead supply near the new record.
Ethereum hovers near records at $4,500 after a 50% monthly rise
The second-largest asset by market cap traded around $4,500, down about 4% over the past 24 hours per Binance. Even with that pullback, the token was still up nearly 50% over the past month, underscoring how broad the rally has been beyond the leading coin. The relative strength showed in higher-beta activity, but sensitivity to macro releases remained evident as volatility picked up around data drops.
Crypto market cap eases 4% to $4.07T yet stays above $4T
Across assets, total capitalization slipped almost 4% in the last day to roughly $4.07 trillion, based on CoinGecko. The threshold above $4 trillion, first cleared in July, continues to hold on a closing basis even as intraday swings widened. Breadth softened alongside the decline, but leadership from the largest names kept the aggregate figure near peak territory.
Federal Reserve rate-cut hopes and Bitcoin sensitivity to yields
The midweek thrust coincided with rising expectations for a September rate cut. Tuesday’s Bureau of Labor Statistics report showed consumer inflation at 2.7% year over year in July, a moderation that traders interpreted as supportive for easier policy. The CME Group’s FedWatch tool reflected growing conviction that a cut was likely, a setup that tends to draw flows from Treasuries toward risk assets, including Bitcoin. Axel Rudolph, senior technical analyst at IG, noted that near certainty of U.S. rate reductions can lift risk appetite while pressuring the dollar, a backdrop that often aligns with firmer crypto pricing.
July CPI at 2.7% and shifting probabilities on FedWatch
The 2.7% CPI print was enough to tilt odds toward a policy move, reinforcing bets that the first cut could arrive as early as September. That shift has historically lowered real-rate headwinds for duration-sensitive assets and speculative growth exposures. For the leading coin, the message translated into a midweek rush to new highs, with liquidity thin above prior peaks and momentum traders extending the break.
PPI jumps 0.9% in July, the largest since June 2022
The tone changed on Thursday morning after the BLS reported a 0.9% monthly increase in prices for goods made by U.S. producers, the biggest gain since June 2022. The hotter-than-expected PPI reading challenged the previous day’s easing narrative, clipped confidence in a near-term cut, and sparked a quick markdown across digital assets. Thomas Perfumo, global economist at Kraken, said the pullback following the stronger PPI appeared to dent confidence in a cut next month. Kyle Chasse of MV Global added that the data “spooks people,” capturing the abrupt shift in sentiment that often accompanies surprise inflation readings.
What analysts said: Axel Rudolph, Thomas Perfumo, Kyle Chasse
Rudolph’s view tied easier policy expectations to firmer risk appetite and a softer dollar, a recipe that helped fuel the breakout to $124,100. Perfumo highlighted how a single upside surprise in PPI can unsettle a market primed for swift policy easing. Chasse pointed to the psychological effect of the BLS print as a catalyst for risk reduction. Together, the remarks mapped cleanly to the intraday arc: optimism into Wednesday’s close, then a defensive posture after Thursday’s data.
Equity cross-currents as the S&P 500 slips
U.S. stocks edged lower on Thursday versus the prior close, mirroring the cautious tone in digital assets. While the S&P 500’s move was modest, the direction aligned with the shift in rate-cut odds implied by the producer-price numbers. Correlation dynamics remain fluid, but a synchronized cooling across equities and tokens reinforced the narrative that macro releases still set the near-term tempo.
Bitcoin market structure, volatility, and near-term drivers
A swift break to fresh highs often leaves thin resting liquidity overhead, which can amplify reversals once momentum fades. After clearing resistance to crest at $124,100, the asset encountered supply and rotated lower, leaving price under $118,000 by Thursday. Elevated realized and implied volatility around scheduled data reinforces two-way risk, especially when positioning is skewed toward continuation. Into upcoming releases, traders will track yield moves, dollar direction, and any revisions to the path of policy that could influence risk budgets.
Policy backdrop and Bitcoin’s July milestone above $4T
The market’s value first moved above $4 trillion in July, aided by a supportive equity tape and policy signals viewed as friendly to digital assets under President Donald Trump. That policy tone, coupled with cyclical hopes for easing, helped frame an environment where rallies extended quickly once resistance levels gave way. Even after the latest dip, the total capitalization remained near that psychological marker, emphasizing how far the market advanced before the data-driven reset.
Conclusion
A record close to $124,100 gave way to a retreat below $118,000 as producer prices rose 0.9% in July, the largest jump since June 2022. The earlier tailwind came from CPI at 2.7% and growing September cut odds on the FedWatch tool, but the inflation surprise tempered those expectations. The broader market value eased about 4% to $4.07 trillion while staying above $4 trillion, with the S&P 500 also slightly lower. Ethereum hovered near $4,500, down 4% on the day yet up almost 50% over the month. Analyst commentary from IG, Kraken, and MV Global captured the whipsaw from optimism to caution, showing how quickly macro signals can reset near peak valuations.
Disclaimer
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