Bitcoin fell on Tuesday, sharply reversing its weekend gains as risk appetite soured in anticipation of key U.S. inflation data, largely offsetting optimism over more favorable regulation in the United States, APA reports citing investing.com.
Buying action by Metaplanet, the sixth-largest corporate holder of the crypto, did little to stimulate prices, while altcoins also stalled after clocking strong gains late last week.
Bitcoin fell 2.8% to $118,630.4 by 01:31 ET (05:31 GMT).
Bitcoin, crypto retreat amid CPI anticipation
Losses in Bitcoin and crypto prices came amid a broader decline in risk-driven assets, as traders took some money off the board in anticipation of key U.S. consumer price index inflation data.
The print is due later on Tuesday, and is forecast to show inflation increasing slightly in July.
Higher inflation could undermine recent bets on a September interest rate cut by the Federal Reserve, especially if inflation rises more than expected.
Markets will also be watching for whether U.S. President Donald Trump’s tariffs factored into higher inflation, although August’s inflation print is expected to offer more cues on this front.
The inflation data is widely expected to factor into the Fed’s plans to cut interest rates, with Bitcoin and crypto to respond positively to more market conviction in a rate cut.
Lower rates boost crypto by opening up more market liquidity for investment in speculative sectors.
Metaplanet buys 518 additional Bitcoin
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Metaplanet Inc (TYO:3350) on Tuesday disclosed the purchase of an additional 518 Bitcoins, bringing the Japanese hotelier turned crypto treasury’s total hoard to 118,113 coins.
The company bought 518 Bitcoin for $61.4 million, at an average price of $118,519.
The latest purchase comes after Metaplanet- the world’s sixth-largest corporate Bitcoin holder, behind Riot Platforms- said it planned to raise $3.7 billion through a stock offering, aimed largely at buying more Bitcoin.
The company now holds about $1.85 billion worth of Bitcoin, as it ramped up its crypto buying over the past year.
The strategy is largely in line with that of Michael Saylor’s MicroStrategy, which used a slew of major equity issuances to fund its Bitcoin buying. The company is the world’s biggest corporate Bitcoin holder and logged a windfall in its valuation and its Bitcoin holdings as the crypto’s price leaped over the past year.
Crypto price today: altcoins stall after strong gains
Broader crypto prices fell in tandem with Bitcoin, cooling after logging strong gains in the past few sessions.
World no.2 crypto Ether fell 0.6% to $4,281.12, falling sharply after coming close to 2021 record highs.
XRP fell 4.1% to $3.1360. Solana and Cardano lost between 5.5% and 6% each.
Among memecoins, Dogecoin fell 6.3%, while $TRUMP shed 5.2%.
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