Bitcoin Rally Pauses at CME Exchange Gap as Inflation Data Sparks Correction

Bitcoin's climb toward a record $124,000 halted Thursday as unexpectedly high U.S. PPI figures and ambiguous comments from Treasury Secretary Scott Bessent prompted a retreat. 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.

This pullback continues a trend of increasingly shallow corrections following each 2025 peak. While January saw a 30% drop from $109,000, August's decline measured just 7% from $124,000—indicating growing market strength. Traders now await Friday's retail sales report, which could influence Fed rate cut timing if results exceed expectations.

Market participants are bracing for potential volatility from $12 billion in August options expiring soon. Bitcoin has set four new all-time highs this year, with each subsequent pullback becoming less severe—a consolidation pattern that experienced traders interpret as sign of a maturing market.