Bitcoin Price Forecast for August

Bitcoin steadies as markets await key U.S. inflation data and a potential Federal Reserve move, with a possible breakout toward new highs

Bitcoin Price Forecast for August

From 11 to 15 August, markets will digest a string of high impact U.S. economic releases. July’s CPI data lands on Tuesday, with core inflation expected to rise to 2.8 percent from 2.7. On Thursday, the PPI will offer a closer look at input costs that could filter through to retail prices. Friday’s retail sales data, along with readings on consumer sentiment and inflation expectations, will complete the picture of U.S. economic health.

The CME FedWatch Tool shows an 88 percent probability of a September rate cut. Bitcoin momentum is supported by positive funding rates around 0.012 and open interest back up to about 41.5 billion dollars, suggesting fresh leveraged longs. Ethereum’s ratio against Bitcoin slipped from a recent peak near 0.037, signaling capital rotation toward BTC. If Bitcoin holds above the 123,000 level, price discovery could begin; a pullback toward 118,000 to 119,000 remains a potential test.

The data week places Bitcoin at a crossroads between monetary policy and risk appetite. A cooler inflation print and a possible Fed move could lift risk assets, guiding BTC toward a break above the 123k barrier. Yet the same data that fuels optimism can raise volatility as traders adjust leveraged bets.

In this setup, BTC's fate depends on macro momentum rather than one headline. If the currency holds above the 123k threshold, there is a chance of rapid price discovery; if not, a test around 118k to 119k could become a battleground for bulls and bears. Ethereum's relative weakness suggests capital is rotating toward BTC, potentially boosting BTC dominance if macro data aligns.

Highlights

The coming days will reveal how data, liquidity, and sentiment collide in crypto markets.