QCP Asia: CPI Data Could Decide if Bitcoin Breaks the All-Time High

Key Takeaways

BTC recovered above $122K, erasing last week's losses; ETH rose 21% to $4,300 for the first time since 2021.

The U.S. CPI report on Tuesday could shape expectations for a Fed rate cut in September.

BTC remains highly correlated with U.S. stocks; institutional demand and spot ETF flows are crucial for a breakout.

Traders remain optimistic but continue to hedge against downside risks.

BTC Recovers as Macro Focus Turns to CPI

Bitcoin has reclaimed the $122,000 level, reversing last week's decline, while Ether rose 21% in the past seven days, surpassing $4,300 for the first time in nearly four years, according to a market report from QCP Asia.

The recovery comes as crypto markets remain closely tied to the performance of U.S. stocks. All eyes are now on the release of the Consumer Price Index (CPI) on Tuesday, which could influence expectations for Federal Reserve policy.

CPI as a Market Catalyst

QCP Asia noted that a CPI reading below market expectations could strengthen the case for a Fed rate cut in September, potentially adding fuel to the current crypto rally.

While sentiment is generally optimistic, the firm highlighted that traders are still positioning with downside hedges, reflecting caution amid short-term volatility.

Key Resistance Test Ahead

According to QCP Asia, the central question now is whether institutional capital and Bitcoin spot ETF flows will provide enough momentum for BTC to break above key resistance and set a new all-time high.