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

Bitcoin's climb toward a historic $124,000 high paused Thursday as stronger-than-expected PPI data and ambiguous comments from Treasury Secretary Scott Bessent prompted a retreat. The cryptocurrency filled last weekend's CME gap at $117,600—a technical occurrence resulting from the mismatch between Bitcoin's continuous trading and CME's limited futures market hours.

The 2025 bull market continues displaying notable resilience. While BTC has achieved four new all-time highs this year, subsequent corrections have progressively diminished: shrinking from January's 30% drop to the current 7% pullback in August. This tightening pattern indicates strengthening market fundamentals despite macroeconomic pressures.

Market participants now await Friday's retail sales figures, with forecasts suggesting a 0.7% monthly increase that could further postpone expected Federal Reserve rate cuts. Additional volatility may emerge from the August expiration of $12 billion in Bitcoin options contracts.