Bitcoin Holds Near $119,000 Ahead of US Inflation Data

Bitcoin (BTC) traded steadily at about $119,000 on Tuesday. The price held this level after failing to close above the key $120,000 mark in the prior session. Traders are now waiting for the U.S. Consumer Price Index (CPI) data. The report is expected to guide expectations for Federal Reserve rate cuts and could spark moves in crypto markets.

Potential Moves After CPI Release

The CPI data is scheduled for release at 12:30 GMT. It is viewed as an important measure for the Fed’s monetary policy direction. Any surprise in the numbers could alter rate cut expectations. This might cause swings in the price of Bitcoin, the largest cryptocurrency by market value.

Sentiment improved slightly after confirmation that the U.S.-China tariff truce will continue until November 10. Beijing also temporarily eased certain export controls for American companies for 90 days.

On the geopolitical front, investors are watching the U.S.-Russia summit set for Friday in Alaska. There is hope it could be a step toward ending the war in Ukraine. A resolution would likely increase risk appetite and support assets such as Bitcoin.

Metaplanet Adds to Bitcoin Holdings

Japanese investment company Metaplanet said on Tuesday it bought 518 more BTC. This takes its total reserves to 18,113 BTC.

Institutional interest in Bitcoin remains strong. Data from SoSoValue shows that Bitcoin spot exchange-traded funds recorded $403.88 million in inflows on Monday. This marked the third straight day of gains since August 6. Analysts say that if these inflows continue, BTC could break its record high of $123,218.

Price Levels and Market View

Bitcoin reached $122,335 during early trading on Monday, close to its all-time high. But it lost momentum above $120,000 and closed lower at $118,686. On Tuesday, the price held around $118,900.

A daily close above $120,000 could open the way for a push toward $123,218. If BTC breaks this level, it would enter new price territory. Bulls would then likely aim for $125,000.

Technical signs remain positive. The Relative Strength Index (RSI) on the daily chart is at 59, above the neutral 50. This shows ongoing bullish momentum. The Moving Average Convergence Divergence (MACD) also had a bullish crossover on Monday, giving a buy signal.

If Bitcoin cannot hold $120,000, it could drop toward $116,000 support.

Ethereum Pulls Back After Reaching $4,349

Ethereum (ETH) is giving up part of last week’s gains. This comes after a rise from the $3,500 support level and an intraday high of $4,349 on Monday.

The rally marked Ethereum’s first break above $4,000 in four years. It was fueled by strong sentiment and increased speculative demand from both institutional and retail buyers.

Analysts warn that bulls need to keep ETH above $4,000 if profit-taking increases in the days ahead. CoinGlass data shows Ethereum futures open interest (OI) has hit a record $58 million, showing continued investor involvement as the price moves toward its all-time high.

Institutional Demand Builds

Demand for Ethereum from institutions has grown in recent weeks, driven by spot ETF purchases. Retail activity has also picked up, with rising OI in the derivatives market.

SoSoValue data shows that U.S.-listed Ethereum spot ETFs posted record weekly inflows of $2.18 billion for the week ending July 18. Inflows have slowed since, but demand remains steady. CoinShares reported about $270 million in Ethereum-related investment products on Monday.

CoinShares noted that Ethereum ETPs led with  $268 million in inflows, pushing year-to-date inflows to a record $8.2 billion and AUM to an all-time high of $31.9 billion, an 82% increase in 2025.

If capital inflows keep up, analysts believe ETH could retest its record high of $4,878 from November 2021.

Tom Lee, founder of Fundstrat, told CNBC that Ethereum might be entering its “2017 Bitcoin” phase. He pointed to rising institutional interest and a better U.S. regulatory backdrop.

Regulatory Moves and Corporate Holdings

Bitcoin also renewed its push toward $123,218 over the weekend, hitting $122,335 on Monday.

In the U.S., President Donald Trump signed the GENIUS Act into law in July after its passage in the House. Two other bills, the CLARITY Act and the Anti-CBDC Act, have passed Congress and will now go to the Senate. If approved, they will head to the President for signing, marking further progress in U.S. crypto regulation.

Lee, who also chairs the board at Bitmine, said the company is focused on Ethereum. Bitmine holds about 833,133 ETH, making it the largest corporate holder, similar to MicroStrategy’s position in Bitcoin. The company aims to hold at least 5% of Ethereum’s supply, or about 6 million ETH. Lee believes Ethereum could reach $30,000 as more companies build reserves.

At present, Ethereum trades at $4,184, down from Monday’s high of $4,349. The pullback comes after breaking the $4,000 mark and reflects shifts in the wider market.

The MACD indicator still shows a buy signal, with green histogram bars above zero supporting the bullish case. This increases the chance of a move above $4,800.

But the RSI is easing from overbought territory, a sign that prices could correct. If selling grows, traders will watch support at $4,000, $3,935, and $3,500.

Ripple (XRP) Slides as Market Waits for U.S. CPI Data

Ripple’s XRP fell to $3.11 on Tuesday amid higher volatility. The drop came as traders awaited the U.S. inflation report.

The token is down nearly 8% from last week’s high of $3.38 and about 15% from the July 18 record of $3.66. Analysts warn that if investor interest weakens further, XRP could fall below $3.00.

Regulatory Update

SEC Chair Paul Atkins said the agency will move to a new phase after ending its legal battle with Ripple. Commissioner Hester Peirce also said that resources freed from litigation could be used to build a clearer crypto regulatory framework.

The SEC recently voted to end its lawsuit against Ripple, allowing a $50 million settlement. Both sides have moved to withdraw appeals. The news lifted XRP above $3.00 on Friday, but resistance at $3.40 stopped the rally.

The SEC sued Ripple in 2020, claiming XRP sales were unregistered securities offerings. A 2023 court decision ruled that sales on exchanges like Binance and Coinbase were not securities, but Ripple was liable for direct sales to institutions.

Ripple is now expanding its services for tokenizing real-world assets, enabling stablecoin transactions through RLUSD, and increasing XRP use in products like On-Demand Liquidity and Ripple Payments.

XRP Price Outlook

XRP is holding above $3.00 before the CPI release. A weaker-than-expected inflation figure could lift the price on hopes for a September Fed rate cut.

Futures OI fell on Tuesday after briefly reaching $8.5 billion on Friday. It is now at $7.9 billion, showing less participation. A continued drop could point to reduced interest and a bearish bias.

The 50-day EMA is at $2.89, the 100-day EMA at $2.67, and the 200-day EMA at $2.40. These could act as support if XRP breaks $3.00. If sentiment improves, a rebound toward $3.40 and $3.66 is possible.