Bitcoin has once again shattered records, surging past the $120,000 mark for the first time—a milestone that underscores the cryptocurrency’s remarkable trajectory in 2025. Midday in Hong Kong saw BTC trading comfortably above $121,000, a 28% increase since the start of the year, according to CoinDesk data. This bullish momentum arrives on the heels of a significant geopolitical shift: President Donald Trump’s recent decision to slap a 30% tariff on the EU and Mexico, effective August 1.
Market Reactions and Expert Insights
The crypto world is abuzz with speculation about Bitcoin’s latest leap. This surge comes after a brief period of tumultuous trading, during which overbought conditions were recalibrated. John Glover, CEO of Ledn, sees this as a pivotal moment. “We’ve finally broken to new highs,” he shared in an email. “The dip to $96k in late June was the wave (ii) pullback we needed within the larger Wave 5,” he explained, referring to an Elliott Wave theory analysis. Glover’s forecast is optimistic, suggesting BTC could hit $136,000 by year-end—a significant revision from his earlier 2026 projection. As explored in Bitcoin Price Reaches Pivotal Moment—Is $120K Next?, this milestone has been anticipated by many analysts.
But here’s the catch: the crypto market isn’t operating in a vacuum. The imminent release of U.S. inflation data looms large, with economists predicting a 0.25% rise in the consumer price index (CPI) for June, translating to a 2.6% annualized growth. The core CPI, excluding volatile food and energy components, is anticipated to have increased by 0.3% monthly and 3% annually. Such figures could play a crucial role in determining the Federal Reserve’s next moves, potentially delaying hoped-for rate cuts.
Trade Wars and Inflation: A Double-Edged Sword
Bitcoin’s ascent is not solely driven by internal market dynamics. President Trump’s aggressive trade policies, particularly the tariffs targeting major economic regions, have injected an additional layer of complexity into the global financial landscape. The tariffs are expected to ripple through various sectors, potentially exacerbating inflationary pressures—already a concern for many investors.
“Risk assets, including BTC, could see some volatility if inflation accelerates,” notes a senior analyst at FactSet. Yet, there’s a silver lining. The robust momentum behind corporate adoption of Bitcoin, coupled with increasing ETF inflows and a favorable regulatory environment in the U.S., paints a promising picture for the cryptocurrency’s future. This aligns with recent insights from Bitcoin data points to rally to $120K after pro BTC traders abandon their bearish bets, highlighting a shift in market sentiment.
Historical Context and Future Implications
Bitcoin’s journey to this point has been anything but linear. Just two years ago, the cryptocurrency was grappling with regulatory hurdles and skepticism about its long-term viability. Fast forward to today, and BTC is not only a staple in many institutional portfolios but also a key player in the broader economic narrative.
The road ahead, however, is fraught with uncertainties. The interplay between geopolitical tensions, inflationary trends, and regulatory developments will continue to shape Bitcoin’s path. As we move deeper into 2025, questions abound: Can Bitcoin maintain its upward trajectory in the face of potential economic headwinds? Will corporate and institutional enthusiasm for crypto sustain its growth, or will it wane under external pressures?
Ultimately, while Bitcoin’s latest peak is cause for celebration among enthusiasts, it also invites a moment of reflection. The coming months will undoubtedly test the resilience of this digital asset, as it navigates the complex dance of global economic forces. As always, the crypto market remains a space where fortunes can change in the blink of an eye, offering both exhilarating opportunities and formidable challenges.
Source
This article is based on: Bitcoin Hits New All-Time High Above $120K as U.S. Inflation Data Looms
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
