August 12, 2025
5 min read
Lance Datsko-Luo
Markets are on high alert ahead of US inflation data set to be released on Tuesday, which could set the stage for crypto’s next rally.
Alice Liu, head of research at CoinMarketCap, said the Consumer Price Index (CPI) could “lock in expectations for a September Fed rate cut, which is generally bullish for risk-on assets like crypto.” Low interest rates typically encourage investors to take on riskier bets such as digital assets.
The CPI figures “could potentially trigger Bitcoin’s next all-time high,” Liu said in comments shared with DL News.
The new data comes as Bitcoin trades around $118,500 after surging past $122,000 over the weekend, reversing last week’s losses, with Ethereum gaining over 20% in the same period.
The US Bureau of Labor Statistics publishes the CPI figures monthly. It is a key economic metric closely followed by policymakers, businesses, and markets, and is seen as one of the most important macro events this month for both Wall Street and digital assets.
A lower CPI figure could solidify expectations for the Federal Reserve to cut interest rates in September, while a hotter inflation read may reduce the chances of a rate cut and weigh on crypto markets.
The new numbers are described by analysts at Presto Labs as “one of the most critical macro data releases in recent memory for risk assets.”
Several analysts anticipate crypto prices will soon hit record highs. Bitwise, Bernstein, and Standard Chartered have all predicted Bitcoin’s price will hit $200,000 before the end of the year.
However, Liu notes that Bitcoin and Ethereum options trades have surged to near yearly highs of $43 billion and $14 billion respectively. “This high open interest from derivatives traders could amplify volatility, so be cautious of short squeezes, sudden liquidations, or sharp price moves,” she warned.
The Federal Reserve has held its benchmark rate at 4.25%–4.50% all year. Markets are currently pricing an 84.4% chance of a September cut, according to the CME FedWatch tool, up from 40% at the beginning of August.
Source attribution: Originally published at DL News on 12 August 2025.
Source attribution: Originally published at DL News on 12 August 2025.