Bitcoin Eyes $137K as CPI Data Fuels Fed Rate Cut Hopes

Bitcoin price today is under the spotlight as traders weigh U.S. inflation data and its implications for Federal Reserve policy. 

Following the July Consumer Price Index (CPI) release, optimism for a September interest rate cut surged, pushing bullish Bitcoin price predictions as high as $137,000. 

While the flagship cryptocurrency briefly dipped after the data, the macro backdrop suggests further upside could be on the horizon—if key resistance levels are broken.

Bitcoin Price Today and CPI Data Impact

The July CPI report revealed a year-over-year inflation rate of 2.7%, slightly below the expected 2.8%. 

Core CPI, which strips out food and energy costs, rose 3.1% annually, in line with expectations. Monthly data showed a modest 0.2% increase for headline CPI and a 0.3% rise for core CPI.

The numbers reinforced the perception that inflationary pressures are easing, increasing the likelihood of a Fed rate cut in September. 

According to CME FedWatch data, market odds for a cut jumped to 93.9% after the CPI release, up from 67% before. Lower interest rates typically favor risk assets like Bitcoin by reducing the opportunity cost of holding them.

Read Also: Bitcoin Goes Down After CPI Data! What's Next?

Market Reaction: Bitcoin and Altcoins Pull Back

BTC/USDT fell 0.8% to around $119,120 after the CPI release, as traders locked in weekend gains. A failure to close above $120,000 capped immediate upside momentum. 

Altcoins followed suit, Ethereum stayed near $4,360, while XRP, Solana, and Cardano saw small declines. Memecoins like Dogecoin and $TRUMP also slipped.

Despite the short-term weakness, the softer CPI reading keeps the bullish case alive. Traders see a favorable macro setup if upcoming PPI data also comes in below expectations, potentially confirming a trend toward monetary easing.

Institutional Buying: Metaplanet’s Big Move

Adding fuel to the bullish narrative, Japanese firm Metaplanet Inc., already the world’s sixth-largest corporate Bitcoin holder, announced it purchased 518 more BTC for $61.4 million at an average price of $118,519. This brings its total holdings to 118,113 BTC, worth roughly $1.85 billion.

Metaplanet’s aggressive buying strategy mirrors that of MicroStrategy, whose accumulation of Bitcoin has significantly boosted its market value. Such institutional moves often inspire retail investors to follow suit, creating upward price pressure.

Read Also: Bitcoin Inflow Rises Today! What Does This Mean?

Technical Outlook: Path to $137K

From a technical standpoint, Bitcoin recently broke out of a bullish flag pattern. Analysts, including “Titan of Crypto,” project an upside target of $137,000, based on trendline breakout analysis. 

However, reclaiming the $120,000 level remains crucial for sustaining bullish momentum.

Key levels to watch:

• Immediate resistance: $120,000
• Primary target: $130,000–$137,000
• Support zone: $117,650–$115,650
• Deeper downside risk: $95,000 (CME gap fill)

Failure to close above $120,000 could trigger another retest of the support zone, while a clean breakout might accelerate Bitcoin’s next rally phase.

Market Sentiment and Momentum Drivers

While the macro and technical setups look favorable, Bitcoin price prediction models are never foolproof. 

A sudden change in inflation trends, hawkish Fed commentary, or broader market sell-offs could derail bullish momentum. Additionally, over-leverage in derivatives markets increases liquidation risks during sharp pullbacks.

Investors should remember that BTC price analysis is inherently speculative, and cryptocurrency markets are known for extreme volatility. Position sizing, risk management, and a clear exit strategy are essential for navigating the current environment.

Read Also: Michael Saylor’s MicroStrategy Buys 155 More BTC for $18M, Nearing 3% of Bitcoin’s Total Supply

Conclusion

With July’s CPI print reinforcing Fed rate cut expectations, Bitcoin’s macro outlook appears bullish, prompting some traders to target $137K in the coming months. 

Institutional buying from companies like Metaplanet adds confidence to the long-term case, while technical patterns support further upside. Still, with volatility always in play, prudent risk management remains the best companion for any bullish bet.

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FAQ

What is Bitcoin’s price today?

As of the latest update, Bitcoin trades near $119,120, slightly lower after the July CPI release.

Why is CPI data important for Bitcoin?

CPI reflects inflation trends, which influence the Federal Reserve’s interest rate decisions. Lower inflation increases the likelihood of rate cuts, which can benefit Bitcoin and other risk assets.

What is the Bitcoin target of $137K based on?

Analysts project $137K using a combination of technical chart patterns and macroeconomic catalysts like potential Fed rate cuts.

What are the risks to Bitcoin’s bullish outlook?

Unexpected inflation spikes, hawkish Fed policy shifts, or sharp market corrections could trigger significant downside moves.

Who is Metaplanet, and why is its Bitcoin purchase significant?

Metaplanet is a Japanese firm that holds over 118,000 BTC. Its large purchases signal institutional confidence, potentially influencing retail investor sentiment.