Bitcoin price today: slips to $117k from record peak; US inflation awaited

Investing.com-- Bitcoin retreated sharply from its record high near $123,000 during Asian trading on Tuesday, as traders locked in profits and adopted a cautious stance ahead of a key U.S. inflation report due later in the day.

The world’s largest cryptocurrency last traded down 4.2% at $117,317.6 as of 01:56 ET (05:56 GMT).

The token reached an intraday high of $123,104.7 on Monday amid growing optimism around U.S. regulatory clarity and substantial institutional inflows. 

Investors await ’crypto week’ updates

The rally coincided with the start of "Crypto Week" in the U.S. Congress on July 14. Lawmakers are expected to debate several key digital asset bills, including the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act. 

The measures are aimed at introducing clearer regulatory frameworks for stablecoins and token classification. 

This move has reinforced investor confidence and helped push Bitcoin and other cryptocurrencies to record-breaking levels.

Institutional investment has been a major catalyst. Spot Bitcoin ETFs recorded over $3.4 billion in inflows in the first half of July, including a record $2.2 billion in the last two days of the previous week, data from Sosovalue showed.

Meanwhile, President Donald Trump and his family have expanded into crypto over the past year, launching the World Liberty Financial project and a meme coin in January. Last week, investor Justin Sun said he would buy an additional $100 million of the $TRUMP coin.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.US CPI due later Tuesday

A key U.S. Consumer Price Index release on Tuesday is expected to show a modest rise in inflation, which could shape Federal Reserve interest rate decisions and impact risk assets such as cryptocurrencies.

Fed Chair Jerome Powell has said he expects tariffs to push inflation higher this summer, likely keeping the central bank on pause until later in the year.

Meanwhile, Trump continued with new tariff threats ahead of his Aug. 1 deadline, further creating a cautious mood among investors.

Crypto price today: altcoins drop tracking Bitcoin losses

Most altcoins also eased on Tuesday, seeing similar profit-taking as in the biggest cryptocurrency.

World no.2 crypto Ethereum fell 1.1% to $2,991.80, but remained near a five-month high.

World no. 3 crypto XRP lost 1.7% to $2.8754.

Solana slipped 3.1%, and Cardano dropped 3.5%, while Polygon slumped over 5%.

Among meme tokens, Dogecoin plunged 7.1%, while $TRUMP declined 5.6%.

Which stock should you buy in your very next trade?

With valuations skyrocketing in 2024, many investors are uneasy putting more money into stocks. Unsure where to invest next? Get access to our proven portfolios and discover high-potential opportunities. In 2024 alone, ProPicks AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record. With portfolios tailored for Dow stocks, S&P stocks, Tech stocks, and Mid Cap stocks, you can explore various wealth-building strategies.

Unlock ProPicks AI