Bitcoin (BTC) is trading near its 2025 all-time high, hovering between $118,000 and $122,000, as traders brace for this week's release of U.S. Consumer Price Index (CPI) and Producer Price Index (PPI) data. These inflation metrics, published by the U.S. Bureau of Labor Statistics, will directly influence Federal Reserve interest rate policy and cryptocurrency market dynamics.
Market participants anticipate significant volatility within 24-72 hours post-release, with historical patterns showing CPI/PPI outcomes triggering BTC price swings of up to 10%. Coinbase reports "persistent institutional attention" and elevated on-chain activity, with BTC open interest surging amid macroeconomic anticipation. Real Vision CEO Raoul Pal emphasized that "falling inflation and forward easing expectations are rocket fuel for crypto risk," suggesting potential long-term upside if data supports rate cuts.
Ethereum (ETH) and other large-cap altcoins face correlated impacts, as liquidity shifts could amplify volatility across crypto markets. Analysts including Arthur Hayes note that cooling inflation historically boosts crypto risk appetite, with BTC's performance often dictating broader market trends.