Bitcoin Price Analysis: BTC Sinks After Hotter-Than-Expected PPI Numbers
Bitcoin (BTC) and the broader crypto market sank after hotter-than-expected inflation numbers and a lack of clarity on US crypto policy lowered prices. Treasury Secretary Scott Bessent indicated that the US will not be buying more BTC for its strategic reserve. While the market tanked, Bessent issued a clarification, stating that the US is still exploring budget-neutral avenues to expand its Bitcoin reserve.
The flagship cryptocurrency fell to an intraday low of $117,208 following Bessent’s comments, but has rebounded during the ongoing session.
Scott Bessent Issues Clarification About Bitcoin (BTC) Reserve
Treasury Secretary Scott Bessent issued a clarification regarding earlier comments about the US strategic Bitcoin Reserve. Bessent had said that the US held BTC worth $15 billion or $20 billion at current prices, adding that the government does not plan any more buys to add to the reserve.
“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.
Bessent issued a clarification after his comments spooked investors, stating that the US was still exploring budget-neutral strategies to buy BTC.
“The Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin to expand the reserve, and to execute on the President’s promise to make the United States the ‘Bitcoin superpower of the world.”
Top Win International Raises $10 Million For Bitcoin Treasury
Top Win International, a Hong Kong-based luxury watch trading company, has announced it has raised $10 million from a group of investors. The company stated that it intends to use the funds primarily to purchase Bitcoin. Top Win generated $176 million in revenue in the last twelve months, with a gross profit margin of 8.04%. It added that it also plans to invest in companies that have a Bitcoin treasury strategy and allocate funds for working capital. The company has also signed a securities purchase agreement to issue a convertible note valued at $3 million. The note has an interest rate of 3% per annum, and can be converted into ordinary shares at a conversion price of $8.79 per share, with a term of three years.
Bitcoin (BTC) Price Analysis
Bitcoin (BTC) surged to a new all-time high on Thursday, reaching $124,533. However, it lost momentum almost immediately after reaching this level and plunged to a low of $117,208 before settling at $118,389. Sellers attempted a recovery during the ongoing session, but the price is back in the red, down 0.22%. The flagship cryptocurrency steadied itself after a bruising 24 hours, which saw the price crumble under intense selling pressure.
“BTC fell from above $123K to near $121K, followed by another wave of selling that pushed it below $119K.”
BTC’s drop below $118,000 led to the liquidation of $227 million in leveraged bullish positions. Some analysts believe the 3.3% increase in the US Producer Price Index (PPI) for July prompted traders to become risk-averse, as inflation figures came in higher-than-expected. However, traditional markets recovered their losses, indicating that BTC’s decline was driven by other factors. According to the CME FedWatch tool, the implied probability of the Federal Reserve cutting interest rates fell to 61%, compared to 67% a week earlier. This indicates reduced confidence in monetary easing, which weighs on crypto prices.
Meanwhile, the Bitcoin options market is showing resilience, with the options skew at 3%, indicating a balanced risk outlook consistent with healthy market opportunities.
BTC started the previous week on a bullish note, rising 0.73% on Monday to settle at $115,051. However, it lost momentum on Tuesday, falling 0.82% to a low of $112,622 before settling at $114,112. Buyers returned to the market on Wednesday as BTC rose 0.80% to reclaim $115,000 and settle at $115,028. Bullish sentiment intensified on Thursday as the price rallied, rising over 2% to cross $117,000 and settle at $117,515. Despite the positive sentiment, BTC was back in the red on Friday, dropping 0.71% to $116,683. The price registered a marginal decline on Saturday before rebounding on Sunday, rising 2.42% to cross $119,000 and settle at $119,309.
Source: TradingView
BTC reached an intraday high of $122,219 on Monday as bullish sentiment intensified. 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. The flagship cryptocurrency surged to a new all-time high on Friday, reaching $124,533. However, it lost momentum after reaching this level, dropping over 4% to $118,389, but not before reaching an intraday low of $117,208. The current session sees BTC marginally down, trading around $117,998.
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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