🔸The rise of Bitcoin $BTC has stalled after the cryptocurrency approached a new all-time high of $124,000. The subsequent drop brought it down to close a "CME gap" at $117,600. This was due to higher-than-expected producer price inflation data and an apparent shift in stance from U.S. Treasury Secretary Scott Bessent regarding the purchase of bitcoin for a strategic reserve.

Despite this setback, Bitcoin has established four all-time highs in 2025, and it is noteworthy that the magnitude of corrections following each peak has been decreasing. For example, the drop after the January peak was 30%, while the recent drop after the August peak has been only 7%.

Looking ahead, the market will be attentive to the U.S. retail sales report this Friday, as a strong number could further reduce expectations for an interest rate cut in September. Additionally, at the end of August, bitcoin options worth $12 billion will expire on Deribit, with most call options concentrated between prices of $120,000 and $124,000, suggesting that if Bitcoin's price remains near these levels, it will align with the position of many derivatives traders.