Bitcoin Falls Below $118K as Traders Eye U.S. Inflation, Crypto Week

Bitcoin (BTC) dropped over 4% during early Tuesday trading in Asia, slipping from its new all-time high of $123,104.7 set just hours earlier. The correction came as traders locked in profits ahead of a pivotal U.S. Consumer Price Index (CPI) reading and heightened Congressional attention to digital assets.

As of 01:56 ET (05:56 GMT), Bitcoin was trading at $117,317.6, down 4.2% on the day.

Crypto Week in Focus

The selloff coincides with the beginning of Crypto Week in the U.S. Congress (July 14 onward), where lawmakers are set to debate key legislation that could define the future of the digital asset industry:

• GENIUS Act (Governance of Emerging Networked Innovation Using Standards)

• CLARITY Act

• Anti-CBDC Surveillance State Act

The legislative momentum is fueling long-term optimism, even as markets cool from overheated short-term levels.

Stay updated with Crypto News API for real-time coverage of these policy debates and their market impact.

Institutional Inflows Drive the Surge

Bitcoin's recent rally was fueled by record-setting institutional inflows into spot Bitcoin ETFs—over $3.4 billion in the first half of July, including $2.2 billion in just the last two trading days of last week, according to Sosovalue.

This surge aligns with improving regulatory sentiment and high-profile endorsements, including:

• Former President Donald Trump's meme coin venture $TRUMP

• Justin Sun's pledge to invest another $100 million in the token

For price trends and historical benchmarks, refer to the Cryptocurrency Historical Data API for performance tracking across all major tokens.

What's Next?

With U.S. CPI data due later today, traders are shifting into wait-and-watch mode. A hotter-than-expected inflation print could reduce risk appetite broadly, while a cooler reading may reignite bullish momentum in crypto markets.

Market Snapshot

• BTC/USD: $117,317.6 ▼ 4.2%

• Intraday High: $123,104.7

• YTD Return: +147% (as of mid-July 2025)