Bitcoin price rises 1.71% as U.S. CPI data shows cooling inflation, boosting risk asset sentiment
Bitcoin is trading at $118,726, up 1.71% on 10 August 2025. The world's largest cryptocurrency extends its gains as investors respond positively to new U.S. consumer price index (CPI) data, which shows that inflationary pressures are beginning to ease. This development is improving sentiment across risk assets, with investors speculating that the Federal Reserve could slow the pace of future interest rate hikes.
Highlights
- Bitcoin trades at $118,726, up 1.71% on 10 August 2025, as easing U.S. CPI data improves investor sentiment for risk assets.
- Slowing inflation raises market expectations that the Federal Reserve may slow future interest rate hikes, prompting renewed buying in digital assets.
- Bitcoin remains in a stable trading range, with momentum moderately bullish amid global rebounds in risk assets and steady trading volumes.
The latest U.S. CPI figures signal a slowing in inflation, providing a relief rally for both equities and digital assets. Market participants appear more comfortable allocating capital to higher-risk assets, including cryptocurrencies, amid hopes the Fed's monetary policy trajectory may become less restrictive if cooling inflation persists. This has prompted renewed buying in Bitcoin, which remains sensitive to macroeconomic data and central bank signals.
From a technical perspective, there are no clear indications of major support or resistance levels at present. Bitcoin continues to trade within a relatively stable range set during the past several sessions, reflecting balanced positioning by traders awaiting clearer direction from economic data and policy statements.
Momentum for Bitcoin is moderately bullish as the price advances on the back of improving macroeconomic sentiment. The market mood is also supported by a general rebound in risk assets globally, though trading volumes and volatility remain in line with recent averages.
If U.S. inflation continues to cool and the Federal Reserve signals a pause or slowdown in rate hikes, Bitcoin could see further upside. Conversely, any reversal in inflation trends or hawkish commentary from policymakers may put pressure on the cryptocurrency’s price.
Overall, Bitcoin is benefiting from a supportive macro environment as cooling U.S. inflation encourages investors to rotate back into riskier assets.
Bitcoin is currently trading near $118,000, supported by strengthened bullish sentiment following both Stephen Miran's Federal Reserve Board appointment and the emergence of a golden cross, a technical pattern that has historically preceded significant rallies. Mid-term prospects have improved as a golden cross signals long-term Bitcoin optimism, with analysts suggesting the potential for explosive growth if these signals hold.
- Forex
- Crypto