Bitcoin Falls to $118,500 Amid Profit-Taking and Upcoming CPI Report
Bitcoin (BTC) faced profit-taking after reaching $122,200, falling to $118,500, a 2.8% drop from its session high but still up 0.4% over 24 hours.
Ether remained stable above $4,200, increasing by 0.8%. However, major altcoins like Solana's SOL, dogecoin (DOGE), and Sui's SUI decreased by 3%-4%.
Analyst James Van Straten noted a CME futures market gap between Friday’s close at $117,430 and Monday’s open at $119,000, suggesting BTC may pull back to fill this gap.
The upcoming U.S. Consumer Price Index (CPI) report is anticipated as a key market catalyst, with the Producer Price Index (PPI) data later in the week.
Bitfinex analysts indicated BTC's momentum will likely hinge on these macroeconomic reports. Increased volatility is expected, with a potential retracement toward $110,000. They expect price oscillation around new buyers' cost-basis due to market sensitivity to macro events.