Bitcoin Nears Record High as Analysts Predict $130K Breakout Ahead of Key CPI Data

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Monday has brought a bullish surge for Bitcoin, with the entire crypto market trading in the green. The world’s largest cryptocurrency jumped 3.5% in the last 24 hours, lifting its market value to $2.42 trillion.

Now, all eyes are on BTC as it nears an all-time high, with analysts eyeing a push toward $130K in this post-halving year ahead of the U.S. CPI report.

Bitcoin Nears All-Time High

Bitcoin kicked off the week on a strong note, climbing 5% to reach $122,000. The rally followed US President Donald Trump’s order allowing retirement savings plans, like 401(k)s, to invest in alternative assets, including cryptocurrencies.

This policy shift sparked a surge in US Bitcoin ETF inflows, marking three consecutive days of gains. On August 8 alone, BTC ETFs saw a record $403.9 million in inflows, led by BlackRock, Fidelity, and Grayscale.

On chain data suggest shows that trading activity is heating up. More investors are betting on higher Bitcoin prices, with open interest, the total number of active futures contracts, rising by 7,834 BTC.

Post-Halving Trends Point BTC Toward $130K

While bitcoin is seeing a bullish rally, analysts are optimistic about Bitcoin’s outlook because 2025 is a post-halving year, a period that has historically brought big rallies. 

According to crypto analyst Benjamin Cowen, BTC tends to climb in July and August after each halving, sometimes pulling back in September before rally strongly again later in the year. As of now, Bitcoin is trading just under its all-time high of $123,000. 

Meanwhile, BTC bullish chart signals, like the “Golden Cross,” suggest the price could push toward $130,000 or even higher if the current momentum holds.

CPI Data Expected to Rise 

Looking ahead, all eyes are on the upcoming US inflation reports on 12th august and Producer Price Index (PPI) due this week. Economists expect July’s CPI to rise to 2.8%, up from 2.6% in June, partly because of new tariffs introduced under Trump.

Higher inflation often drives investors toward assets like Bitcoin, which is seen by some as a “safe haven.” If inflation comes in high, demand for Bitcoin could increase even further.

Meanwhile, markets currently see a strong chance of two rate cuts in September, with the possibility of even bigger cuts gaining traction.

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FOMC Meeting: US Fed Resumes Bond Purchase, Is Interest Rate Cut Ahead?

FOMC Meeting Twist Begins Amid Interest Rate Cut Uncertainty

Ahead of the US Federal Reserve FOMC Meeting on May 6, the market is analyzing the impact of its latest move to resume bond purchases. Over the past few weeks, Fed Chairman Jerome Powell has waded off pressures to lower interest rates at a time when pundits believe this move could revive the market. However, the apex bank resumed bond purchases, fueling more speculation on what this move means for the broader financial market.

FOMC Meeting and the Bond Purchase Twist

The US Federal Reserve has initiated its biggest 3-year bond purchase since 2021, according to an X update from Money Guru Digital. The bank injected $20 billion daily, as shown in the Treasury auction results. With expectations for interest rate cuts at the FOMC meeting slated for May 7. 

It is worth noting that this liquidity injection marks a big statement from the Fed as it suggests the bank is addressing lingering financial stress. This level of capital injection was last seen during the COVID-19 pandemic, a comparative measure to stabilize the market.

Amid the ongoing U.S.-China trade war and changing market realities, Fed Chair Jerome Powell is acting more cautiously. Despite the tempered approach to the market stabilizing plans, the exact policy update from tomorrow’s meeting can change the market trend.

Interest Rates Difference: Jerome Powell and President Trump in Spotlight

Outside the FOMC meeting, Jerome Powell and US President Donald Trump have clearly different views on how to handle the economy. As CoinGape reported earlier, President Trump urged the Fed to lower interest rates ahead of Wednesday’s meeting.

The premise hinges on inflation being under control. It is pegged at 2.39%, down from 2.82% in March. Despite the tariff war, this inflation is closer to the benchmark 2% annualized target set by the Federal Reserve.

It remains unknown what the Fed’s position is, but bond purchases might provide short-term relief for the financial market overall.

Key Implications for Bitcoin and Risk Assets

Historically, risk-on assets like Bitcoin are known to react to FOMC meeting decisions. A lowered interest rate will make the yield on crypto assets more attractive to investors. 

After an intense volatility earlier in the trading day, Bitcoin price has reclaimed the $95,000 mark amid a 1.3% rally. Altcoins are also responding to the potential interest rate update tomorrow with Ethereum, XRP, and Solana paring off their daily losses.

Per an earlier BTC price review, the coin has a potential $100,000 breakout thesis. Irrespective of the direction of the Fed on Wednesday, a move that may also materialize if the Fed continues to inject liquidity into the market.

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Crypto Whales Bought These Altcoins in the Fourth Week of April 2025

The crypto market has seen a notable uptick in activity this week, with total market capitalization rising by 10% over the past seven days. 

This surge reflects renewed investor interest, particularly among large holders, who have strategically accumulated select altcoins. 

Uniswap (UNI)

Uniswap’s governance token UNI is one of the tokens crypto whales bought this week. This is evidenced by its large holders’ netflow, up 492% over the past seven days. 

UNI Large Holders Netflow
UNI Large Holders Netflow. Source: IntoTheBlock

The large holders’ netflow measures the difference between the amount of tokens that whales buy and sell over a specified period. When it surges like this, it signals strong accumulation by whales, suggesting growing confidence or a bullish outlook on the asset.

If whale accumulation persists, UNI could extend its rally to $7.10. On the other hand, if demand leans, UNI could shed recent gains and fall to $4.60. 

MANTRA (OM)

OM’s recent price downturn has opened the door for strategic accumulation by some of its largest holders. According to on-chain data from Santiment, whale addresses holding between 10 million and 100 million OM tokens scooped up 26 million OM during the week under review.

OM Supply Distribution.
OM Supply Distribution. Source: Santiment

This accumulation trend follows a dramatic collapse in OM’s price on April 13. The token suffered a flash crash that erased over 90% of its value in less than an hour, wiping out more than $5.5 billion in market capitalization. 

The price plunge shook retail sentiment, but whales appear to have viewed it as a discounted entry point, positioning themselves for a potential recovery.

If this trend continues, OM could rally above $1. However, once selloffs resume, its price could fall to $0.022.

Worldcoin (WLD)

Sam Altman-linked WLD is another altcoin that crypto whales bought this week. On-chain data shows that whales holding between 1 million and 10 million tokens have acquired 13 million WLD over the past week.

WLD Supply Distribution
WLD Supply Distribution. Source: Santiment

This group of WLD investors holds 798.06 million tokens at press time, marking their highest recorded balance. If WLD whales increase their accumulation, its price could rally back above $1.

On the other hand, if selloffs continue, it could fall to $0.57.

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From Aave to Hyperliquid: Are Token Buybacks the Next Big Evolution in Crypto?

Many cryptocurrency projects such as Aave, dYdX, Jupiter, and Hyperliquid have recently announced token buyback mechanisms.

Traditional stock markets inspire the token buyback strategy. But does this strategy help crypto projects build a sustainable economic model and contribute to increasing the price of their tokens?

The Booming of Crypto Projects’ Token Buyback Programs

Token buybacks occur when crypto projects repurchase their tokens from the market. These repurchased tokens can be held as reserves or even burned. In theory, buybacks reduce circulating supply, creating scarcity, which may drive up token prices. Although not a new strategy, BeInCrypto has observed that this trend is rapidly expanding.

For example, in early March 2025, the lending protocol Aave (AAVE) announced the implementation of a new Aavenomics. Aave will repurchase tokens to reduce supply and shift from staking rewards to a more sustainable liquidity model. This included a weekly AAVE token buyback worth $1 million for six months, funded by protocol fees.

In an ideal scenario, this buyback plan could reach a total value of $100 million (3% of the circulating supply).

“We consider it the most important proposal in our history, feel free to have a read and provide feedback,” said Marc Zeller, founder of the Aave Chan Initiative (ACI).

Also in March, the decentralized exchange (DEX) dYdX approved “Proposal #225” to buy back DYDX tokens. The protocol will use platform revenue for the buyback.

Other crypto projects like Hyperliquid (HYPE) and Jupiter (JUP) have similar plans. Estimates suggest Hyperliquid will repurchase $600 million worth of tokens annually, using 50-100% of transaction fees. This protocol dominates decentralized finance (DeFi) despite the market downturn.

Jupiter has committed to using 50% of fees for buyback, estimated at $250 million annually. Recently, this project surpassed Raydium and became Solana’s second-largest protocol.

These are just a few of the most typical crypto projects. Many other projects, including Gnosis, Gains Network, and Arbitrum, employ similar strategies. So, could this reshape the current cryptocurrency market?

What’s Driving This Token Buyback Trend?

Discussing this buyback strategy, an X (formerly Twitter) user commented:

“Buybacks create steady demand and reduce circulating supply, which can stabilize or even increase token prices.” commented Capitanike.

The fundamental economic principle of supply and demand is the key driver. By reducing circulating supply, crypto projects aim to increase token scarcity, which could push prices higher. According to SolanaFloor, projects with token buyback programs outperformed those without buybacks by 46.67% in 2024 (-0.6% vs. -47.15% YTD).

Performance of Projects with Token Buyback Programs Source: SolanaFloor
Performance of Projects with Token Buyback Programs Source: SolanaFloor

Secondly, the buyback can signal strong financial health for crypto projects. This is particularly effective in reassuring investors amid market volatility.

Thirdly, unlike the token burn strategy, many projects (such as AAVE and Gains Network) redistribute repurchased tokens to stakers or holders, aligning incentives. This approach could indicate the maturity of a project’s tokenomics model over time.

However, token buybacks are not without weaknesses. As this strategy becomes more widespread, regulators like the SEC may scrutinize it for potential manipulation or illicit activities. 

Additionally, an improperly calculated buyback strategy could overly reduce token supply. If a project fails to balance new issuance or staking rewards, it might suffer from decreased trading volume. Moreover, buybacks could potentially mask financial weaknesses.

“What’s more plausible, in our opinion, is that these buybacks serve as proof that the projects raised too much during their ICO, are failing to develop anything useful, and don’t know what to do with their cash balances…” TokenData Research report.

The recent surge in crypto projects adopting token buybacks marks a significant evolution in tokenomics. While buybacks can enhance price stability, investor confidence, and ecosystem growth, they also carry manipulation risks and regulatory problems.

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