Bitcoin $123K on Low CPI; ETF Inflows & $2B Liquidations
Bitcoin rose to an all-time high of $123,231 on US CPI data showing 2.7% YoY and 0.2% MoM inflation, both below forecasts. The report boosted the S&P 500 to 6,457 and lifted the probability of a September Fed rate cut to 93.9%, fueling risk demand. Spot ETF inflows hit $65.9M for Bitcoin and $523.9M for Ethereum, with each asset exceeding $1B in cumulative flows. According to Hyblock and CoinGlass, more than $2B in short positions between $122,800 and $125,500 face liquidation, potentially driving buybacks. Bitcoin’s market cap topped $2.45T, contributing to a $4.15T total crypto market cap as traders target $125K.
Bullish
The combination of lower-than-expected US CPI, strong spot ETF inflows, and over $2B in potential short liquidations creates a bullish outlook for Bitcoin. In the near term, below-forecast inflation data raises the odds of Fed rate cuts, boosting risk-on sentiment and driving price momentum. ETF inflows provide sustained buying pressure, while forced closures of short positions between $122,800 and $125,500 could trigger additional automated buybacks. Over the longer term, growing institutional adoption via ETFs and a surging market cap support a positive price trajectory, with traders eyeing the $125K level as a key liquidity target.