QCP Asia: CPI Data Could Decide Whether Bitcoin Breaks All-Time High

Key TakeawaysBTC rebounded above $122K, erasing last week’s losses; ETH surged 21% to $4,300 for first time since 2021.Tuesday’s U.S. CPI report could shape expectations for a September Fed rate cut.BTC remains highly correlated with U.S. stocks; institutional demand and spot ETF flows are crucial for a breakout.Traders remain bullish but continue hedging downside risks.BTC Recovers as Macro Focus Turns to CPIBitcoin has reclaimed the $122,000 level, reversing last week’s pullback, while Ether surged 21% over the past seven days, crossing $4,300 for the first time in nearly four years, according to a QCP Asia market report.The rebound comes as crypto markets remain closely tied to U.S. equity performance. All eyes are now on Tuesday’s Consumer Price Index (CPI) release, which could influence Federal Reserve policy expectations.CPI as a Market CatalystQCP Asia noted that a CPI reading below market forecasts could strengthen the case for a September Fed rate cut, potentially adding fuel to the current crypto rally.While sentiment is broadly bullish, the firm highlighted that traders are still positioning with downside hedges, reflecting caution over near-term volatility.Key Resistance Test AheadAccording to QCP Asia, the central question now is whether institutional capital and spot Bitcoin ETF inflows will provide enough momentum for BTC to break above key resistance and set a new all-time high.