Bitcoin’s surge to a new all-time high was followed by a market-wide decline as hotter July inflation data dampened risk sentiment, while U.S. regulatory moves and altcoin rallies fuel long-term bullish outlooks.
Bitcoin briefly touched a record $124,128 before retreating 4% to about $118,816 amid hotter-than-expected July inflation figures that shifted investor sentiment to risk-off. The crypto market, valued at $4.11 trillion, saw capital flow into major altcoins, including XRP, Litecoin, and Cardano, which have each logged significant gains over the past year. XRP reached $3.65 in July after the GENIUS Act, the first full-scale U.S. stablecoin regulation, took effect, while Litecoin climbed 15% in August and Cardano rose 29% in two weeks. President Trump’s signing of the GENIUS Act and the SEC’s launch of Project Crypto have added to optimism over regulatory clarity. Despite the pullback, technical patterns for several assets suggest potential near-term upside.