Cryptocurrency research firm QCP reported that Bitcoin (BTC) surpassed $122,000, recouping last week’s losses. Ethereum (ETH) surged 21% in the last seven days, surpassing $4,300 for the first time since 2021.
According to the report, BTC is currently highly correlated with US stock markets, with investors’ eyes on the Consumer Price Index (CPI) data to be released on Tuesday.
If the CPI data falls short of expectations, it could reinforce expectations that the Federal Reserve (FED) will cut interest rates in September.
While optimism prevails across the market, investors are cautious about potential downside risks and are trying to hedge their positions.
QCP emphasized that the critical question is whether demand from institutional funds and spot Bitcoin ETFs can push BTC above key resistance levels.
Experts predict that Bitcoin could break its all-time high, particularly if institutional investors infiltrate the market and spot ETFs fuel demand. Upcoming CPI data and Fed policies will be key to determining the direction of the crypto market.
*This is not investment advice.