Bitcoin Retreats on Profit-Taking, U.S. CPI and PPI in Focus
Bitcoin Retreats Below $120,000 Amid Profit-Taking, Market Eyes U.S. Inflation Data
Bitcoin slipped back under the USD 120,000 threshold on Monday after a choppy trading session, as investors locked in profits following last week’s strong run-up. The pullback came despite the broader uptrend remaining intact, with sentiment still leaning positive. However, traders are bracing for potentially heightened volatility ahead of this week’s U.S. macroeconomic releases, including the Consumer Price Index (CPI) and Producer Price Index (PPI) reports.
Market participants are keenly aware that these inflation readings could set the tone for the remainder of August. A softer-than-expected inflation print would likely bolster expectations of a more dovish U.S. Federal Reserve stance, potentially reinforcing risk appetite and lending further support to the cryptocurrency market. Conversely, hotter-than-anticipated figures could challenge that narrative, triggering renewed selling pressure.
Despite Monday’s dip, capital inflows into Bitcoin-linked exchange-traded funds (ETFs) remained positive, signaling that institutional and retail interest has not meaningfully waned. Bitcoin ETFs drew USD 253 million in net inflows, albeit down from Friday’s pace and well below the exceptionally high volumes seen in July. The figure nonetheless represents a turnaround from the modest outflows recorded in early August. Analysts note that a return to larger daily inflows could reignite upward momentum and help Bitcoin reclaim recent highs.
Interestingly, Ethereum-linked ETFs outpaced Bitcoin in Monday’s fund flows, attracting more than USD 461 million in fresh capital — a sign that investors are increasingly diversifying exposure within the crypto sector. The shift may also reflect expectations around Ethereum’s longer-term network upgrades and its expanding role in decentralized finance (DeFi) ecosystems.
On the corporate side, institutional adoption of Bitcoin continued to gather pace. Japanese investment firm Metaplanet added another 518 BTC to its treasury, underscoring the growing trend of publicly listed companies integrating Bitcoin into balance sheet strategies. Such moves provide structural demand support, even in the face of near-term market pullbacks.
Overall, while Monday’s retreat illustrates the market’s sensitivity to profit-taking and macroeconomic uncertainty, the combination of ongoing ETF inflows, rising corporate adoption, and a still-bullish macro backdrop could set the stage for another leg higher — provided upcoming inflation data delivers the dovish cues investors are hoping for.
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