Bitcoin’s Rally Pauses at CME Exchange Gap Amid Inflation Concerns

Bitcoin's climb toward a historic $124,000 high paused on Thursday as unexpected U.S. PPI data and ambiguous comments from Treasury Secretary Scott Bessent unsettled investors. The cryptocurrency filled a CME gap at $117,600—a technical occurrence resulting from differences between Bitcoin's continuous trading and CME futures market hours—but couldn't maintain upward momentum.

This marks Bitcoin's fourth pullback from an all-time high in 2025, with each subsequent decline showing diminishing severity. Following January's 30% drop, May saw a 12% decrease, July experienced a 9% correction, and August's current 7% retreat indicates weakening sell pressure despite ongoing macroeconomic challenges.

Market attention now shifts to Friday's retail sales data, where an anticipated 0.7% monthly increase could further reduce expectations for a September Fed rate cut. Additionally, the expiration of $12 billion in Bitcoin options in late August presents the next potential source of market volatility.