Bitcoin traded near $110,000 on Tuesday, supported by sustained institutional buying and cautious investor positioning ahead of crucial U.S. inflation data that will influence the Federal Reserve’s interest rate decisions.

• Bitcoin last traded around $109,900, up nearly 4.2% over the past week, holding close to its May all-time high of $111,814.
• Market positioning has current Fed funds futures pricing in a 61% chance of a rate cut in September.
• Investors expect May Core CPI to rise by 0.3%, with headline CPI likely at 0.2% MoM and 2.4% YoY.

The crypto reached a session high of $110,237, prompting analysis from firms like Bitwise and VanEck suggesting potential price targets between $180,000 and $200,000 by end of year, contingent on continued flows and easing macro conditions.

“The current rally is less speculative and more structurally driven than in past cycles,” said Rachael Lucas, a Bitcoin analyst at BTC Markets. “Institutional capital, ETFs, and corporate treasuries are playing a significant role in creating sustained buying pressure.”

Recent development includes a $54.5 million leveraged long position triggering upside momentum, with support around $105,500. Several firms are signaling continued demand:

• MicroStrategy (formerly) holds 582,995 BTC.
• Japan’s Metaplanet plans a $5.4 billion Bitcoin reserve expansion.
• The Blockchain Group targets a $342 million raise.

Financialization signals abound, with BlackRock’s iShares Bitcoin Trust (IBIT) now holding $70 billion in assets and Ethereum ETFs posting 15 consecutive days of inflows totaling $837.5 million.

The market outlook remains buoyant despite the pending data:

• Economists see Core CPI likely up 0.3% and headline inflation 2.4% YoY.
• Broader supports include ongoing U.S.-China trade talks, the U.K.’s lifting of its crypto ETF ban, and Hong Kong’s CBDC pilot advancements.

However, analysts warn the cycle isn’t risk-free. Lucas cautioned that regulatory reversals, liquidity shortages, or competitive flows into other digital assets could limit upside potential. A rise in profit-taking, or Fed statements signaling slower rate cuts, could also weigh on prices against bonds’ appeal.

Disclaimer: Cryptocurrency investments involve significant risk due to extreme volatility.