Bitcoin (BTC) is trading close to two-week highs near $110,000, buoyed by sustained institutional buying and cautious investor positioning ahead of key U.S. inflation data that could shape the Federal Reserve’s interest rate outlook for the remainder of 2025. Bitcoin holds steady near $110K, maintaining a positive outlook. The cryptocurrency was last seen at $109,900, after briefly touching a session high of $110,237, according to CoinGecko data. Over the past week, Bitcoin has gained 4.2%, remaining within striking distance of its May 22 peak of $111,814.
Market in Holding Pattern Ahead of CPI Report
Investors are closely watching the release of May’s Consumer Price Index (CPI) report, scheduled for 8:30 a.m. ET on Wednesday. Economists anticipate that core CPI will rise 0.3% from April, with headline CPI increasing 0.2% on a month-over-month basis and 2.4% year-over-year, based on MarketWatch data. Bitcoin holds steady near $110K as market participants await crucial data. Producer price data is set to follow on Thursday.
“Markets appear to be in a holding pattern as traders await fresh catalysts—particularly U.S. inflation data that could tilt Fed expectations,” said Lukman Otunuga, senior market analyst at FXTM. “Meanwhile, gold remains in focus, with a technical breakout potentially signaling a renewed push toward record highs.”
Sticky inflation could delay expected rate cuts, potentially weighing on risk assets like Bitcoin. However, the market outlook remains optimistic for now, with Bitcoin holds steady near $110K amid institutional buying and Fed funds futures indicating a 61% probability of a rate cut in September, according to the CME’s FedWatch Tool.
Institutional Buying Fuels Sustained Momentum
The current rally in Bitcoin is being driven by structural factors rather than speculative fervor, analysts say. Institutional capital, ETF inflows, and corporate treasury allocations are playing a pivotal role in sustaining buying pressure.
“The current rally is less speculative and more structurally driven than in past cycles,” noted Rachael Lucas, a crypto analyst at BTC Markets. “Institutional capital, ETFs, and corporate treasuries are creating sustained buying pressure.”
Lucas highlighted a recent $54.5 million leveraged long position that triggered upside momentum, reinforcing support around $105,500. Meanwhile, major players continue to expand their Bitcoin holdings:
- Strategy (formerly MicroStrategy) now holds 582,000 BTC.
- Japan’s Metaplanet plans to raise $5.4 billion to expand Bitcoin reserves.
- The Blockchain Group is targeting a $342 million raise for Bitcoin accumulation.
In the ETF space, BlackRock’s iShares Bitcoin Trust (IBIT) has reached $70 billion in assets under management (AUM) , while Ethereum ETFs have recorded 15 consecutive days of inflows, totaling $837.5 million, per CoinGlass data.
Broader Macro Trends Support Crypto Resilience
Broader macroeconomic signals have turned supportive for cryptocurrencies in recent weeks:
- Ongoing U.S.-China trade talks have eased geopolitical tensions.
- The U.K. lifted its ban on crypto ETFs, opening new avenues for institutional investment.
- Hong Kong is advancing central bank digital currency (CBDC) pilots with Chainlink, signaling growing regulatory acceptance of blockchain technology.
Analysts suggest that this cycle may be evolving into a “supercycle,” characterized by shallower drawdowns and increased institutional resilience. However, risks remain.
“Regulatory reversals, liquidity shortages, or competitive flows into other digital assets like Ethereum or Solana could put a ceiling on upside potential,” Lucas cautioned.
Additionally, if profit-taking accelerates or the Federal Reserve signals a slower path to rate cuts, government bonds could regain appeal, posing a potential headwind for crypto prices. Bitcoin holds steady near $110K amid mixed signals.
Price Targets Remain Bullish
Despite these uncertainties, price targets from leading firms remain optimistic. Analysts at Bitwise and VanEck project Bitcoin could reach between $180,000 and $200,000 by year-end, assuming continued inflows and easing macroeconomic conditions persist.
“This doesn’t mean it’s without risk,” Lucas added. “But the structural drivers of this rally suggest Bitcoin is well-positioned for further gains in the medium term.” As Bitcoin holds steady near $110K, investors remain watchful.
Final Thoughts
As Bitcoin steadies near $110,000, all eyes are on the upcoming inflation data and Federal Reserve signals. While sticky inflation could delay rate cuts and weigh on risk assets, the structural strength of Bitcoin’s rally—fueled by institutional adoption and ETF inflows—remains intact.
For now, the market appears cautiously optimistic, with analysts projecting further upside potential amid favorable macro trends. However, investors should remain vigilant about potential headwinds, including regulatory shifts and competition from other digital assets.
