BTC Breaks Above $120K for the First Time as Markets Brace for Inflation Data

Bitcoin Breaks Above $120,000 as Inflation Data Looms Large

Bitcoin has surged past $120,000 for the first time ever, extending its gains for the year to an impressive 28%.

As of midday in Hong Kong, the price of Bitcoin (BTC) hovered above $121,000, according to CoinDesk data.

The record-breaking rally follows President Donald Trump’s announcement of a 30% tariff on imports from the European Union and Mexico, set to begin on August 1. Despite adding turbulence to markets, the news helped resolve roughly 48 hours of sideways price action, resetting short-term indicators and reigniting bullish sentiment.

Markets are now bracing for U.S. inflation data expected this week. Economists surveyed by FactSet anticipate the Consumer Price Index (CPI) rose 0.25% in June, reflecting a 2.6% annual pace. The core CPI, which excludes volatile food and energy costs, is projected to climb 0.3% for the month and 3% year over year.

A higher-than-expected inflation reading could weigh on risk assets like Bitcoin, potentially delaying any interest rate cuts from the Federal Reserve. However, strong institutional adoption, robust ETF inflows, and a positive regulatory backdrop in the U.S. may cushion any potential downside for BTC.

John Glover, CEO of Ledn, remains optimistic about Bitcoin’s trajectory.

“Breaking to new highs confirms the correction down to $96,000 in late June completed wave (ii) within the broader Wave 5 rally,” Glover noted in an email.

“My initial forecast saw Bitcoin reaching around $136,000 in the first quarter of 2026, but this latest momentum suggests we could hit that target by the end of this year instead,” he added.