Bitcoin's recent surge to an all-time high has cooled as traders took profits ahead of the crucial U.S. Consumer Price Index report. The price dropped over 4% to around $117,000, with analysts suggesting that upcoming inflation data could influence Federal Reserve policy and impact market sentiment for cryptocurrencies.

Bitcoin remains stable near $114,000 as markets anticipate a potential 25 basis point rate cut by the Federal Reserve following the release of U.S. consumer price data that met expectations. Analysts predict three additional cuts could occur before Q1 2026, which may boost BTC and risk assets as traders seek inflation hedges.