Bitcoin Rally Slows Amid U.S. Inflation Concerns
- Bitcoin rally stalls due to U.S. inflation data.
- Market volatility affects derivatives and altcoins.
- Institutional activity remains high with record open interest.
On August 15, 2025, Bitcoin’s rally sharply stalled after unexpected U.S. inflation data and ambiguous policy signals from Treasury leadership led to a steep cryptocurrency market sell-off.
This event highlights significant volatility, affecting Bitcoin pricing and broader derivative markets, as inflation impacts investor expectations and Treasury’s stance creates policy uncertainty.
Bitcoin’s recent rally stalled after U.S. inflation data exceeded expectations, causing market volatility. Reports indicated severe impact on crypto assets and financial shifts occurred on August 15, 2025.
Treasury Secretary Scott Bessent’s statements on a U.S. bitcoin reserve added to policy uncertainty. Scott Bessent, U.S. Treasury Secretary, remarked,
“Market uncertainty attributed to conflicting statements on U.S. bitcoin reserve, increasing policy whiplash and risk aversion.”CoinTelegraph
Increased volatility was noted, especially with institutional investors and significant derivatives open interest reaching $32.5 billion.
Bitcoin experienced a 7% drop, affecting market dynamics. The liquidation of over $930 million in leveraged positions marked a substantial market shift, impacting various trades worldwide significantly.
Inflation data altered future Federal Reserve policy expectations, with rate cut probabilities decreasing. According to CME FedWatch,
“Probability of a 0.25% rate cut on September 17 fell to 90.5%, from 99.8% pre-PPI.”
This resulted in a risk-off sentiment, influencing crypto markets and adding pressure to financial implications globally.
Altcoins like AERO showed increased liquidity despite the larger dip. Meanwhile, strategies on Avalanche and Starknet saw increased transaction activity as new tokens enhanced liquidity flows.
Historical data shows similar events occurring in 2022 and 2023, with inflation affecting asset pricing. Anticipated derivatives expiry may further influence market behavior as volatility offers both caution and opportunity, with $12B in BTC options expiring on August 31 as noted by options traders (CME, Deribit).
