Bitcoin Price Analysis: BTC Loses Steam After Push Above $124,000
Bitcoin’s (BTC) price action saw two extremes as it surged to a new all-time high before losing momentum. The flagship cryptocurrency crossed $124,000 and set a new all-time high of $124,533. However, it plummeted below $120,000 almost immediately following an unsettling US PPI report. The report revealed that wholesale inflation surged far beyond expected levels, jeopardizing expectations of a rate cut.
Investor sentiment was further soured after US Treasury Secretary Scott Bessent ruled out new Bitcoin purchases. BTC is down nearly 4%, trading around $118,626.
Block Reveals Modular Bitcoin Mining System
Block, a fintech company, has announced the launch of a new modular Bitcoin mining system, Proto Rig. It also launched a free, open-source fleet management software. The company made the announcement during an event at Core Scientific’s Dalton, Georgia, facility. Core Scientific is already using Block’s Proto Rigs for mining activity. Proto Rig features a modular design that allows operators to upgrade individual hashboards. It extends the lifespan of a mining rig to ten years, reducing costs by 15% to 20%. Thomas Templeton, Hardware Lead at Block, stated in a press release,
“Mining hardware hasn’t really changed in years. Machines break often, are hard to repair, expensive, and time-consuming to upgrade, and don’t make the most efficient use of power or space.”
BlackRock’s Crypto Portfolio Crosses $100B, Bitcoin (BTC) Dominates
According to an analysis by Finbold, BlackRock’s crypto holdings have crossed the $100 billion mark, reaching $104 billion as of August 14. Finbold based its findings on blockchain data from Arkham Intelligence. The analysis revealed that BlackRock’s current crypto portfolio includes $89.27 billion in Bitcoin (743,310 BTC) and $14.71 billion in Ethereum (3.2 million ETH). This is a $49.15 billion net increase since the beginning of 2025, when the asset manager’s crypto holdings were at $54.83 billion, with $51.16 billion in BTC and $3.59 billion in ETH.
US Treasury Secretary Rules Out Further Bitcoin (BTC) Buys
Bitcoin (BTC) lost momentum after reaching a new all-time high on Thursday, after US Treasury Secretary Scott Bessent stated that the government has no plans to purchase additional BTC for its Bitcoin reserve. As a result, the flagship cryptocurrency plunged below $120,000 and is currently trading around $117,700, with sellers in control. Bessent stated,
“We’ve also started to get into the 21st century, a Bitcoin reserve. We’re not going to be buying that, but we are going to use confiscated assets and continue to build that up.”
US President Donald Trump signed an executive order on March 6, establishing a strategic Bitcoin reserve and a separate digital asset stockpile. Both reserves initially used cryptocurrencies forfeited in criminal and civil cases. Bessent had initially advocated for a strategic shift in the US’s approach to Bitcoin, stating that the government should stop selling Bitcoin and “bring it onshore” using established regulatory frameworks.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) is in freefall during the ongoing session, down nearly 5% following Treasury Secretary Scott Bessent’s statement that the US does not plan additional Bitcoin purchases. Investor sentiment also soured following an unsettling US PPI report, which revealed that wholesale inflation increased beyond expectations, jeopardizing expectations for low interest rates.
Signs that BTC is overheating also emerged. Bitcoin’s funding rate, which helps indicate an overheated market, registered an increase in long bets. However, the bets were substantially smaller than previous bets. This means BTC has some way to go before investors need to worry about an overheated market. A jump in funding rates could indicate increased volatility and liquidation risks. On the other hand, the short-term holder (STH) Spent Output Profit Ratio (SOPR) revealed very little profit taking.
Other technical indicators suggest a “top” may be in. Popular analyst Captain Faibik wrote,
“BTC Liquidity has been grabbed at the highs. We’ve now printed the 9th TD Sell Candle. Daily RSI is Printing Bearish Divergence. Rising Wedge Formation. This combination suggests the top might be in & Bearish Rally could be around the corner. Don’t get trapped in late longs… patience will pay off.”
BTC registered a sharp decline on Friday (August 1), dropping over 2% and settling at $113,365. Sellers retained control on Saturday as the price fell 0.67% and settled at $112,601. Despite the overwhelming selling pressure, BTC recovered on Sunday, rising 1.52% to cross $114,000 and settle at $114,215. The price continued pushing higher on Monday, registering a 0.69% increase and settling at $115,051. BTC plunged to an intraday low of $112,707 on Tuesday as selling pressure returned. It rebounded from this level to reclaim $114,000 and settled at $114,051, ultimately dropping 0.83%. The price recovered on Wednesday, rising 0.80% to reclaim $115,000 and settle at $115,028.
Source: TradingView
Bullish sentiment intensified on Thursday as BTC rallied, rising over 2% to cross $117,000 and settle at $117,515. Despite the positive sentiment, the price was back in the red on Friday, falling nearly 1% to $116,683. BTC registered a marginal decline on Saturday but recovered on Sunday, rising 2.42% to reclaim $119,000 and settle at $119,309. The price surged to an intraday high of $122,319 on Monday. However, it lost momentum after reaching this level and settled at $118,701, ultimately dropping 0.51%. Market sentiment turned positive on Tuesday as the price recovered, rising 1.19% to cross $120,000 and settle at $120,113. Bullish sentiment intensified on Wednesday as BTC rallied, rising nearly 3% to settle at $123,365. BTC is in freefall during the ongoing session after setting a new all-time high earlier in the day, reaching $124,533. The flagship cryptocurrency is down nearly 5%, trading around $117,699.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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