On August 5, U.S. President Trump’s dismissal of the Bureau of Labor Statistics (BLS) director sparked market fears over the politicization of inflation data. With over $2.1 trillion in TIPS (Treasury Inflation-Protected Securities) relying on the credibility of CPI figures, any erosion of trust could trigger systemic risk in the U.S. bond market. Despite strong performance this year, TIPS reflect persistent inflation expectations, making next week’s CPI release highly anticipated. In the meantime, short-term Treasury yields fell sharply, as investors increasingly bet on early Fed rate cuts.
In the crypto market, BTC remains under pressure amid macro uncertainty. Price action continues to test the $112,000 support zone; a breakdown below this level may trigger cascading liquidations.
Bitunix Analyst’s View: Rising skepticism around CPI data could fuel broader risk-off sentiment. BTC’s key short-term support sits between $112,000–$113,000. If that range fails to hold, traders should tighten risk controls. A potential bounce may occur if CPI data falls short of expectations, but positioning should remain nimble until a clearer directional breakout emerges.
