Bitcoin (BTC) maintained its strength, holding firm above the $107,000 level, yet the broader cryptocurrency market is beginning to show signs of exhaustion. While the leading digital asset demonstrated resilience, trading at approximately $107,714 against USDT, several major altcoins experienced a wave of profit-taking. Dogecoin (DOGE) saw a notable decline of nearly 4%, bringing its price to around 19 cents, while Tron’s TRX slipped by 5.5%. Other prominent tokens, including XRP, BNB Chain’s BNB, Solana’s SOL, and Cardano’s ADA, registered losses of up to 3%. This cautious sentiment suggests that traders are opting to secure gains as many assets approach significant local resistance levels, creating a short-term headwind for the market.

Ether (ETH), which had previously outpaced Bitcoin following a surge in ETF-related interest and bullish derivatives activity, also showed signs of cooling. After briefly touching the $2,800 mark, ETH retraced, with the ETH/USDT pair trading around $2,443.68. The ETH/BTC pair, however, showed a slight gain of 0.53% to 0.02274, indicating some relative strength against Bitcoin despite the broader altcoin pullback. Despite this short-term consolidation, the underlying market structure remains constructive. According to Augustine Fan, Head of Insights at SignalPlus, momentum is quietly building as smart money takes notice of fundamental shifts. In a message, Fan noted, “Mainstream sentiment on crypto has turned around noticeably, especially on the back of Circle’s successful IPO, with Gemini and Bullish having filed their own listing intentions with the SEC recently.” He also highlighted the trend of corporate BTC treasury strategies and growing excitement around stablecoins in both traditional finance and decentralized ecosystems.

Macro Tailwinds Bolster Crypto Market Outlook

The positive sentiment is further supported by favorable macroeconomic developments. A softer-than-expected U.S. inflation report and perceived progress in U.S.-China trade relations have improved the outlook for risk assets globally. Jeffrey Ding, Chief Analyst at HashKey Group, stated in a message, “The U.S.-China deal progress and softer CPI data are encouraging signs for global markets, easing inflationary pressures and creating a more stable economic outlook.” He expressed optimism that digital assets will continue to grow as these macro influences resolve and institutional integration deepens. This view was echoed by Kraken economist Thomas Perfumo, who remarked that the rally reflects crypto's evolving function as a macro hedge against real yield volatility and fiscal deficit concerns. “We’re witnessing a virtuous cycle: the adoption of structural bid vehicles like spot ETFs — particularly within a more favorable U.S. regulatory environment — is absorbing supply far faster than anticipated,” Perfumo added, highlighting the powerful impact of institutional inflows.

Bitcoin's Path to $200K Gains Credibility

Wednesday's encouraging inflation data has significantly amplified bullish forecasts for Bitcoin. The report from the Labor Department revealed that the consumer price index (CPI) rose just 0.1% last month, below the 0.2% consensus forecast from economists surveyed by Reuters. This has led analysts like Matt Mena, a crypto research strategist at 21Shares, to issue highly optimistic price targets. “Today’s CPI print may serve as a bullish catalyst for Bitcoin - and it may be the unlock that brings this target forward by several months,” Mena explained in an email. He suggests that if BTC breaks decisively out of its $105,00-$110,000 range, a rapid move toward $120,000 is possible, potentially reaching his year-end target of $138,500 by the end of summer. Mena went further, stating, “If momentum continues building, a $200K Bitcoin by year-end is now firmly in play.”

This cooling inflation trend has tangible implications for monetary policy, strengthening the case for the Federal Reserve to consider easing later in the year. Following the CPI report, traders increased their bets on Fed rate cuts, pricing in approximately 47 basis points of easing for the year, with a high probability of the first cut occurring by September or October. Mena believes this macroeconomic tailwind combines powerfully with other bullish crypto-native catalysts. “As macro clarity improves, we should see Bitcoin flows accelerate - driven by renewed institutional confidence, increased activity from Bitcoin treasuries, and the continued rollout of state-level Strategic Bitcoin Reserve (SBR) programs,” he noted. This convergence of factors could supercharge ETF inflows and solidify Bitcoin's role in global investment portfolios, creating an environment for which, as Mena concluded, “Bitcoin is built.”