Key Takeaways:
- Bitcoin is currently experiencing retracement around $117,000 as of writing, from record highs reaching approximately $123,000
- Investors await June U.S. CPI report, making it a crucial parameter for interest-rate path.
- Altcoins follows on BTC’s pullback, demonstrating temporary drop while reflecting broader profit-taking.
The world’s largest cryptocurrency made a sharp retreat last traded down 2.55% at ~$116,800 as of writing after reaching an intraday high of ~$123,000 on Monday, fueled by growing optimism around the discussion of new proposed crypto-related regulations and massive institutional inflows.
This significant pullback is currently making Bitcoin under pressure as traders and investors step back from fresh highs while looking forward to this week’s inflation data report.
Crypto Week Updates
Along with Bitcoin’s massive breakout yesterday is the start of “Crypto Week” in the U.S. Congress where the legislators are expected to discuss various regulations regarding digital assets such as GENIUS Act, CLARITY Act, and Anti-CBCD Surveillance State Act.
These new laws are expected to make a favorable support and control in stablecoins and other digital tokens, which gives a higher chance in limiting their flexibility and operation.
Moreover, this move served as a catalyst in reinforcing investor appetite and helping push Bitcoin and other cryptocurrencies to their record peaks.
On the other hand, President Donald Trump and his family have significantly expanded their involvement in the crypto market over the past year, where they also launch the World Liberty Financial project and the $TRUMP meme coin last January. In a recent X post by Justin Sun, a crypto billionaire who founded TRON blockchain, he showed his interest to $TRUMP coin by planning to buy $100 million worth of it.
Altcoin Correlation & Volume Trends
Most of the top alt-coins had an extended profit-taking after a massive Bitcoin push on Monday, where Ethereum dipped ~1.17%, Solana ~2.70%, and XRP ~1.29% as of writing, led by Bitcoin’s own price movement with its dominance exceeding to 64.22%, according to TradingView.
Summary
After reaching an all-time high of ~$123,000, Bitcoin has retraced to around $117,000 as traders brace for the release of critical U.S. inflation data (CPI). The market awaits clarity on interest rate paths, as a lower-than-expected CPI could reignite bullish momentum. This pullback coincides with the start of “Crypto Week” in Congress, where lawmakers are discussing crypto regulations including the GENIUS and CLARITY Acts. Altcoins like Ethereum, Solana, and XRP also dipped slightly. Meanwhile, Trump’s increasing involvement in crypto and speculation around rate cuts continue to stir investor sentiment.
