Bitcoin retreated on Tuesday after reaching a new all-time high above USD 123,000, as investors moved to secure their profits ahead of key U.S. economic data.
The reversal follows a strong rally driven by expectations of regulatory clarity and surging institutional demand.
Spot BTC ETFs saw more than USD 3.4 billion in inflows during the first half of July, which supported the market.
The rally also preceded the opening of “Crypto Week” in the U.S. Congress, where lawmakers are debating a series of digital asset bills. The proposed legislation, aimed at clarifying stablecoin issuance and token classification, has strengthened confidence across digital markets.
Attention now turns to U.S. inflation data, with market participants weighing the potential impact of inflation readings on the Federal Reserve’s policy. A higher inflation print could dampen appetite for risky assets, including cryptocurrencies, by prolonging expectations of tighter monetary conditions. On the other hand, a softer inflation outlook, coupled with progress in Washington’s legislative agenda, could support renewed gains.
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