Bitcoin prices fell on Tuesday, giving up most of the gains made over the weekend as risk appetite cooled amid anticipation of key US inflation data, largely erasing optimism over prospects for more favorable cryptocurrency regulation in the United States.
Buying by Metaplanet, the sixth-largest institutional holder of the cryptocurrency, failed to spur prices, while other alternative coins also halted their rallies after strong weekend gains.
Bitcoin dropped 2.8% to $118,630.4 by 1:31 a.m. ET (05:31 GMT).
Bitcoin and cryptocurrencies retreat as CPI data takes center stage
The US annual Consumer Price Index (CPI) came in at 2.7%, compared with economists’ estimates of 2.8%. The Core CPI, which excludes highly volatile sectors such as energy and food, registered 3.1%, beating forecasts by 0.1 percentage point.
Analysts see the data as a positive signal for crypto market bulls, as it may prompt the US Federal Reserve to cut interest rates at its upcoming September Federal Open Market Committee meeting.
The Fed targets a healthy inflation rate of around 2%, and the latest figures have been edging closer to that level in recent months.
It is worth noting that CPI figures are not the only factor the Fed considers when deciding on a possible rate cut; the latest US jobs report showed the economy weaker than expected, increasing the likelihood of lowering the benchmark rate.
Indeed, Bitcoin (BTC) reacted positively to the CPI release, briefly climbing above $119,000, while Ethereum (ETH) performed even better, rising to $4,350.
Metaplanet buys an additional 518 Bitcoin
Metaplanet Inc (Tokyo Stock Exchange: 3350) announced on Tuesday the purchase of 518 additional Bitcoin, bringing the Japanese hospitality company-turned-crypto investment treasury’s total holdings to 118,113 BTC.
The deal was valued at $61.4 million, at an average price of $118,519 per coin. The latest acquisition follows Metaplanet’s earlier announcement of a plan to raise $3.7 billion through a share issuance, with the primary goal of purchasing more Bitcoin.
The company now holds approximately $1.85 billion worth of Bitcoin, after accelerating its buying spree over the past year.
This strategy closely mirrors that of Michael Saylor’s MicroStrategy, which has relied on several large stock offerings to fund its Bitcoin purchases. MicroStrategy remains the largest institutional holder of the cryptocurrency globally, reaping substantial gains in both valuation and holdings as Bitcoin prices surged over the past year.
Whale wallets hit record high as price momentum accelerates
Data from Bitcoin Magazine Pro showed that around 19,000 individual wallet addresses now hold at least 100 Bitcoin, marking a new record.
This milestone indicates that large holders – known as “whales” – continue to build their positions even with Bitcoin trading near all-time highs. Historically, an increase in whale wallet counts has been linked to greater confidence in long-term price growth and a willingness to hold through market volatility.
This accumulation extends a trend that began in early 2024, when the number of addresses holding over 100 Bitcoin was around 16,000, surpassing 18,500 by mid-2025 before breaking the 19,000 mark this month.
Analysts note that such accumulation often precedes “supply squeeze” conditions in the market, as the number of actively traded coins diminishes. While retail traders typically chase short-term gains, whales tend to buy during dips and hold through market cycles – a strategy that has proven effective in past bull runs.
With Bitcoin’s price rising alongside greater concentration of holdings among whales, the market may be on the verge of entering a new phase of supply scarcity and heightened competition for coins.
