Analysis: BTC is expected to continue to fluctuate in the range before strong catalysts such as the Federal Reserve releasing easing signals or ETF fund inflows appear.

According to Bitfinex Alpha, Bitcoin briefly hit an all-time high of $123,640 last week before retracing by 5.4%. Affected by the U.S. inflation data, market risk appetite has declined. Currently, the price of BTC is consolidating between the historical high and the low of the range. It is expected that the price will continue to fluctuate in the range before the Federal Reserve releases easing signals or strong catalysts such as ETF inflows appear. Ethereum performed outstandingly, rising from $1,386 in April to $4,783 last week, close to the 2021 peak of $4,864. Its strong performance has driven funds to high-risk assets, and Bitcoin's dominance rate has dropped from 65% to 59% in two months. Although this round of momentum has attracted more speculative interest, the lack of structural capital inflows has increased volatility in the altcoin market, and the overall market is still at a critical turning point. In addition, U.S. inflation data for July showed that service industry costs and tariff-related commodity prices continued to rise.