Bitcoin Soars Past $123K as U.S. Debt Crisis and CPI Shake Markets
BTC enters ‘crisis mode’ while altcoins surge and Powell faces pressure
Bitcoin is rewriting history this week, crossing the $123,000 mark for the first time as it kicks off mid-July with record-breaking momentum. But beneath the celebration lies a complex storm of macroeconomic concerns, led by a ballooning U.S. deficit, weakening dollar, and upcoming inflation data.
Bitcoin Price Blasts Through $120K
After two months of sideways action, BTC/USD surged to $123,000, locking in a $10,000 gain over the last weekly candle, according to Cointelegraph Markets Pro and TradingView. This breakout marks a key moment in Bitcoin’s long-anticipated price discovery phase.
“$BTC is going to hit $135,000 in Q3,” predicted trader Cas Abbe, following a confirmed breakout above $107,700.
Other traders, including BitQuant, are aiming for $145,000, while Material Indicators’ Keith Alan points to a long-term Cup & Handle breakout nearing its target.
A Strong July—But Typical in Bitcoin Terms
Despite crossing $120K, July’s performance—a 14% rise so far—is standard by Bitcoin’s historical standards. Over the past decade, July has routinely brought gains above 20%, while August tends to be a weaker month.
Analysts like Ryan Detrick remind traders that gains typically frontload in July across both crypto and stocks. “Most of those gains happen in the first half of the month,” he said.
CPI and Powell Under the Spotlight
This week also brings critical U.S. inflation data, including June’s Consumer Price Index (CPI) and Producer Price Index (PPI), with jobless claims and import prices also on deck.
Meanwhile, Fed Chair Jerome Powell is under fire from President Trump, who is calling for his resignation over slow rate cuts.
“You’re telling me he’s going to quit? I hope he quits,” Trump said on July 13.
Despite internal Fed chatter about potential cuts, markets still expect no changes before September, according to the CME Group’s FedWatch Tool.
Rising Debt Fuels Bitcoin’s Rally
May saw the third-highest monthly U.S. deficit ever recorded: $316 billion, adding urgency to fiscal concerns. The U.S. national debt continues to hit record highs, contributing to what analysts now call Bitcoin’s “crisis mode.”
“Rates are rising, the USD is down 11% in 6 months, and crypto is up $1 trillion in 3 months,” wrote The Kobeissi Letter.
“Bitcoin has entered ‘crisis mode’.“
This financial pressure cooker is seen as one of the driving forces behind Bitcoin’s sharp climb and the weakening U.S. dollar.
Bitcoin Dominance Slips—Altcoins Surge
Bitcoin’s share of the total crypto market dropped below 65% this week after peaking at 66% in late June, opening the door to a potential altcoin resurgence.
“Once Bitcoin dominance tops, we’ll see altcoins run like crazy,” says trader Crypto Caesar.
Ether (ETH) alone is up nearly 20% this week, topping $3,000 for the first time since February. Analysts like Rekt Capital argue that even a 2.5% dip in dominance is enough to ignite altcoin momentum.
While some predict a rebound in BTC dominance by October, others see this as the beginning of a new “altseason.”
What Comes Next for Bitcoin and Crypto Markets?
As macro pressures mount and inflation data looms, Bitcoin sits at the center of a larger economic storm. Traders are watching for consolidation at current levels—or another rapid move toward $135K and beyond.
With global M2 money supply at a record $55.48 trillion, many are asking: Will Bitcoin follow the money?
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