Bitcoin Smashes Past $120,000 as Traders Await Key U.S. Inflation Data
Bitcoin has soared above the $120,000 mark for the first time ever, pushing its year-to-date gains to 28%.
At midday in Hong Kong, BTC was trading over $121,000, according to CoinDesk market data.
The record high comes in the wake of President Donald Trump’s announcement of new 30% tariffs on imports from the EU and Mexico, set to take effect on August 1. Despite creating volatility, the news helped resolve a stretch of choppy trading over the prior two days, allowing technical signals to reset and fuel fresh upward momentum.
Investors are now focused on upcoming U.S. inflation figures, due later this week. Economists polled by FactSet expect the Consumer Price Index (CPI) to show a 0.25% increase for June, translating to 2.6% annual growth. The core CPI, excluding food and energy, is forecast to rise 0.3% month-on-month and 3% year-on-year.
A stronger-than-expected inflation reading could put pressure on risk assets like Bitcoin, potentially delaying anticipated interest rate cuts by the Federal Reserve. However, analysts believe the downside may be limited, thanks to continued institutional adoption, healthy ETF inflows, and a supportive regulatory environment in the U.S.
John Glover, CEO of Ledn, remains bullish on Bitcoin’s prospects.
“With new highs confirmed, the decline to $96,000 in late June now looks like the wave (ii) pullback within the larger Wave 5 advance,” Glover said in an email.
“Previously, I expected Bitcoin to hit around $136,000 in the first quarter of 2026, but given this momentum, we could see that target reached by year-end,” he added.
