Unraveling Bitcoin: The $120K Chase, Inflation Fluctuations, and Unexpected Revelations

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Key Points Illuminated:

  • In the grand theatre of currency, Bitcoin‘s price, like a dearest fool, aims to seize the liquor of liquidity at the exalted figure of $120,000.

  • The PPI, like a cool breeze on a sweltering day, surprises the masses with its unexpected gentility, stirring relief in the hearts hardened by yesterday’s fiery CPI revelations.

  • Our dear BTC/USD duo deftly avoids the ominous abyss of the CME gap lurking below at $115,000—an escape worthy of a melodrama!

As the clanging bells of Wall Street announced the dawn on a luminous Wednesday, the spirited Bitcoin (BTC) seized upon the winds of US inflation data, breathing a sigh of relief.

Bitcoin Chart

The July Fed: A Rate-Cut Mirage?

In the realm of CryptoMoon Markets Pro and TradingView, BTC/USD frolicked around the noble figure of $119,000, with a gentle breeze of 0.5% respectably lifting its spirits.

The Producer Price Index (PPI) results cascaded down from the lofty heights of the US Bureau of Labor Statistics (BLS), revealing that unadjusted, the final demand index rose a mere 2.3 percent over the past year. How splendidly quaint!

This modest advance in final demand goods negated a slight retreat in services, thus producing a harmonious equilibrium, though one might wager it was more of a dance than a battle.

PPI Measurement

Despite this seemingly lowly rise of 2.3%, the PPI finds itself still 0.2% shy of expectations, and 0.4% beneath the prior month’s swelling.

As the sage trading resource, The Kobeissi Letter, quipped, “Ah, the cooling of producer inflation, how intriguing!”—rather reminiscent of a cool evening after a day in the sun.

In stark contrast to its fiery Consumer Price Index (CPI) counterpart, which had ascended 2.7% year-on-year to reach heights unseen since February—a scenario that surely makes one ponder the absurdity of existence.

Some wise commentators have posited that the Federal Reserve, too disturbed by this gentle cooling, may hesitate to lower interest rates, thereby threatening their beloved risk assets. But others, with a twinkle of mischief, argue that inflation numbers remain far from critical, especially within the tumultuous theatre of a brewing trade war.

“The only hiccup in CPI arose due to oil ruffling its feathers in June, yet it has returned to its lowly status, which will manifest next month,” chuckled crypto analyst Matthew Hyland with the wisdom of ancient bards.

“Behold! No high inflation has materialized as nearly all sages foretold by now.”

Market Sentiment Chart

However, the latest whispers from the CME Group’s FedWatch Tool indicate no sign of change in the market’s fevered imaginations regarding rate cuts come July 30—a vexing enigma, indeed.

Bitcoin and its Pursuit of Nearby Liquidity

With participants in this grand market carousel, the scent of a new liquidity round beckons from afar—a siren’s call irresistible to many.

$BTC High leverage liquidation fishing — TheKingfisher (@kingfisher_btc) July 16, 2025

As reported, the order-book liquidity on CryptoMoon appears to fashion low-timeframe price magnets, akin to iron fillings drawn towards a magnet’s embrace.

Moreover, the monitoring oracle CoinGlass has divulged that liquidity lies clustered invitingly between $119,500 and $120,500—an alluring landscape for any wandering trader!

Liquidity Analysis

“Lo and behold! Bitcoin appears to find refuge just above its Daily CME Gap,” proclaimed the ever-watchful trader and sage Rekt Capital.

This gap, spoken of in hushed tones and spiritual reverence, rests between the sacred levels of $114,300 and $115,600 and is often invoked to draw the price closer.

CME Gap Overview

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2025-07-16 18:45