PANews reported on August 18th that according to Bitfinex Alpha, Bitcoin briefly hit a record high of $123,640 last week before retracing 5.4%. Market risk appetite declined due to the impact of US inflation data. Currently, BTC prices are consolidating between their all-time highs and range lows. Prices are expected to remain range-bound until strong catalysts such as the Federal Reserve signaling easing or ETF inflows emerge.

Ethereum has performed exceptionally well, rising from $1,386 in April to $4,783 last week, nearing its 2021 peak of $4,864. Its strength has driven capital flows into riskier assets, causing Bitcoin's dominance rate to drop from 65% to 59% in two months. While this momentum has attracted increased speculative interest, the lack of structural capital inflows has exacerbated volatility in the altcoin market, and the overall market remains at a critical turning point.

Furthermore, US inflation data for July showed continued increases in service costs and prices of tariff-related goods, with core inflation hitting a six-month high and the Producer Price Index (PPI) exceeding expectations, further compressing corporate profit margins. This suggests that inflationary pressures persist, posing challenges to the Federal Reserve's path at its September policy meeting and suggesting that market expectations for a rapid rate cut may be overly optimistic.