Bitcoin Price Falls to $118.6K Ahead of Key CPI Data
Bitcoin prices fell sharply on Tuesday, reversing recent weekend gains. The drop came as risk sentiment weakened ahead of crucial U.S. inflation data. This caution outweighed optimism about more favorable crypto regulation in the United States.
Metaplanet Buying Fails to Lift Prices
Buying activity from Metaplanet, the sixth-largest corporate Bitcoin holder, failed to boost the market. Altcoins also lost momentum after strong gains late last week.
By 01:31 ET (05:31 GMT), Bitcoin was down 2.8% at $118,630.4.
Crypto Retreats on CPI Anticipation
Bitcoin and broader crypto prices slipped alongside other risk assets. Traders booked profits before the release of the U.S. Consumer Price Index (CPI) for July.
The CPI data, due later Tuesday, is expected to show a slight increase in inflation. A higher-than-expected reading could reduce the chances of a September interest rate cut by the Federal Reserve.
Tariffs and Inflation in Focus
Markets are also watching whether U.S. President Donald Trump’s tariffs contributed to price pressures. However, clearer signals are expected from the August inflation report.
The CPI release is seen as a major factor in shaping Fed policy. If rate cuts become more likely, Bitcoin and crypto could benefit from increased market liquidity, attracting more investment into speculative assets.
Metaplanet Expands Bitcoin Holdings
On Tuesday, Metaplanet Inc. (TYO:3350) announced the purchase of 518 additional Bitcoins. The deal, worth $61.4 million at an average price of $118,519, brings the company’s total holdings to 118,113 Bitcoins, valued at roughly $1.85 billion.
Metaplanet recently revealed plans to raise $3.7 billion via a stock offering to fund further Bitcoin purchases. This mirrors the strategy of MicroStrategy, led by Michael Saylor, which remains the largest corporate holder of Bitcoin.
Altcoins Pull Back After Rally
Altcoin prices also fell in line with Bitcoin.
- Ethereum (ETH) dropped 0.6% to $4,281.12 after nearing its 2021 record high.
- XRP declined 4.1% to $3.1360.
- Solana (SOL) and Cardano (ADA) each lost between 5.5% and 6%.
- Dogecoin (DOGE) fell 6.3%, while $TRUMP token slid 5.2%.
The pullback comes after a period of strong gains across the crypto market, suggesting traders are turning cautious ahead of key macroeconomic data.
