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Bitcoin retreated on Friday, reversing from record highs above $124,000 as stronger-than-expected U.S. producer price data cooled expectations for aggressive Federal Reserve rate cuts next month.
The world’s largest cryptocurrency fell 2.2% to $119,112.5 as of 02:04 ET (06:04 GMT), after touching an all-time high of $124,436.8 in the previous session. The pullback followed Thursday’s release of hotter U.S. PPI figures, which also pressured other major digital assets.
Fed Cut Hopes Recalibrated
U.S. producer prices surged 0.9% month-on-month in July, the biggest increase since June 2022 and well above forecasts of 0.2%. The data revived inflation concerns and reduced the likelihood of a 50-basis-point rate cut in September. Money markets now assign roughly a 90% probability to a smaller 25-basis-point cut, with the dollar strengthening as a result.
The shift in rate expectations weighed on risk assets, including cryptocurrencies, which had rallied earlier in the week on softer consumer inflation and renewed institutional interest.
Trump-Linked Bitcoin Miner Eyes Asia Expansion
The Financial Times reported Friday that American Bitcoin—a U.S. mining firm backed by Donald Trump Jr. and Eric Trump—plans to acquire listed companies in Japan and potentially Hong Kong to build a bitcoin reserve, emulating Michael Saylor’s “Strategy” model. The firm, set to go public in September via a reverse merger with Gryphon Digital Mining, is exploring overseas “accretive opportunities” but has made no binding commitments.
Altcoins Retreat in Tandem
- Ethereum (ETH) fell 2.9% to $4,639.89 after approaching record highs on Thursday.
- XRP declined 4.1% to $3.13.
- Solana dropped 5.1%, Cardano lost over 6%, and Polygon slid 5.5%.
- Among meme coins, Dogecoin tumbled 7%, while $TRUMP fell 5.6%.
While momentum in crypto markets remains underpinned by long-term institutional adoption trends, near-term price action is increasingly sensitive to U.S. macroeconomic data and shifting Fed rate expectations.
