Source: Parth Sanghvi
Bitcoin Experiences 4% Dip Following Record Highs
Bitcoin (BTC), the prominent digital currency, experienced a 4% drop in its value during early Tuesday trading sessions in Asia. The cryptocurrency had reached an all-time high of $123,104.7 just hours earlier. This sudden correction is largely attributed to traders seeking to secure profits ahead of the U.S. Consumer Price Index (CPI) reading and increased Congressional scrutiny of digital assets. By 01:56 ET (05:56 GMT), Bitcoin was trading at $117,317.6, marking a 4.2% decrease on the day.
Impact of US Congressional Crypto Week on Bitcoin’s Value
This sell-off coincided with the commencement of the much-anticipated Crypto Week in the U.S. Congress, which kicked off on July 14. During this week, lawmakers are expected to discuss crucial legislation that could shape the future of the digital asset industry. The week’s proceedings are expected to include debates on the GENIUS Act (Governance of Emerging Networked Innovation Using Standards), the CLARITY Act, and the Anti-CBDC Surveillance State Act.
Despite the short-term market cooling, the legislative momentum is fuelling long-term optimism within the cryptocurrency sector. Investors and traders are eagerly keeping tabs on these policy debates and their potential impact on the market. Real-time coverage of these policy discussions and their market implications can be accessed via the Crypto News API.
Record-Setting Institutional Inflows Propel Bitcoin’s Surge
Bitcoin’s recent rally was driven by unprecedented institutional inflows into spot Bitcoin ETFs. According to data from Sosovalue, over $3.4 billion was invested in the first half of July, with $2.2 billion coming in just the last two trading days of the previous week. This surge aligns with a generally positive regulatory sentiment and high-profile endorsements.
Notably, former President Donald Trump’s meme coin venture, $TRUMP, and Justin Sun’s commitment to invest an additional $100 million in the token have been significant contributors to the positive market sentiment. For detailed price trends and historical benchmarks, the Cryptocurrency Historical Data API offers comprehensive performance tracking across all major tokens.
Traders Anxiously Await U.S. CPI Data Release
With the U.S. CPI data slated for release later today, traders have adopted a wait-and-watch strategy. The inflation print could have significant implications for risk appetite and market trends. A higher-than-expected inflation rate could dampen risk appetite across the board, while a lower reading might reignite bullish momentum in cryptocurrency markets.
Bitcoin Market Snapshot
As of mid-July 2025, Bitcoin’s year-to-date return stands at an impressive +147%. Despite a 4.2% drop in early Tuesday trading sessions, Bitcoin was still trading at a robust $117,317.6, down from the intraday high of $123,104.7. As traders and investors anxiously await the release of U.S. CPI data, the market holds its breath, anticipating the potential impact on Bitcoin and the broader cryptocurrency landscape.
The recent developments and market trends underscore the dynamic nature of the cryptocurrency market. As legislative discussions continue and institutional investment surges, the future of Bitcoin and other digital assets remains an intriguing space to watch.