According to Bitfinex Alpha, Bitcoin briefly touched an all-time high of $123,640 last week before pulling back 5.4% due to U.S. inflation data affecting market risk appetite. Currently, BTC price is consolidating between the historical high and the range low, and it is expected to continue range-bound fluctuations until strong catalysts such as a dovish signal from the Federal Reserve or ETF fund inflows emerge.
Ethereum has performed outstandingly, rising from $1,386 in April to $4,783 last week, close to the peak of $4,864 in 2021. Its strength has driven funds towards high-risk assets, with Bitcoin's dominance rate dropping from 65% to 59% in two months. Although this momentum has attracted more speculative interest, the lack of structural capital inflows has intensified volatility in the altcoin market, and the overall market remains at a critical turning point.
Additionally, U.S. inflation data for July shows that service industry costs and prices for tariff-related goods continue to rise, with core inflation hitting a six-month high and the Producer Price Index (PPI) exceeding expectations, further compressing corporate profit margins. This indicates that inflationary pressures still exist, posing challenges for the Federal Reserve's path at the September policy meeting, and the market's expectations for rapid interest rate cuts may be overly optimistic.
