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- Bitcoin hit $124K after cooler CPI data but faces possible pullback.
- Ethereum and altcoins are outperforming, reducing BTC dominance.
- Institutional ETF filings point to rising altcoin investment interest.
Bitcoin (BTC) surged to a record $124,457 on Aug. 14, just a day after July’s U.S. Consumer Price Index (CPI) data came in cooler than expected. Inflation remained at 2.7% year-over-year, below forecasts of 2.8%, while monthly CPI rose just 0.2%. The softer inflation print added roughly $40 billion to Bitcoin’s market capitalization, pushing the total crypto market cap to $4.25 trillion.
BTC is currently trading near $121,881, with a sharp 32% increase in 24-hour trading volume, according to CoinMarketCap.
Mow Sees Two Possible Market Paths
Long-time Bitcoin advocate Samson Mow outlined two diverging market scenarios. In one, Bitcoin “goes Godzilla,” absorbing market liquidity and triggering an altcoin sell-off. In the other, an “altcoin mania” drives speculative frenzy, prompting a short-term Bitcoin drop before recovery.
Two possible paths for #Bitcoin now.
— Samson Mow (@Excellion) August 14, 2025
1⃣ We Godzilla or Omega up, suck all the oxygen out of the room, and alts drop 30-40%.
2⃣ Alt mania peaks, triggering a massive selloff as the Bagholder's Dilemma loses equilibrium, BTC goes down briefly then up again, as alts tank.
Mow also revisited his “Bagholder’s Dilemma” theory, warning that Ethereum (ETH) may struggle at psychological resistance levels near its all-time high. He believes Bitcoin is less prone to such selling pressure.
Altcoins Outperform as BTC Dominance Slips
Despite Bitcoin’s breakout, Ethereum has gained 59% over the past month versus Bitcoin’s 3.8% rise. ETH is now trading around $4,738, just 3.4% below its 2021 record.
The trend extends beyond Ethereum. Altcoin market cap has risen 26% since reclaiming $250 billion, with historical resistance looming at $315 billion. According to analyst Rekt Capital, flipping that level into support is key for a sustainable rally.
Also Read: Metaplanet Bitcoin Holdings Hit $2.18B as Q2 Profits Jump 41%
Institutional Demand Shifts to Altcoins
Bitcoin’s dominance has fallen below 60% for the first time since January, as Google searches for “altcoin” hit their highest since 2021 and “Ethereum” interest reached a two-year peak. The U.S. has also seen 31 altcoin ETF applications in the first half of 2025, signaling growing institutional appetite.
With altcoins running “too hot” and institutional interest broadening, analysts see potential for a short-term Bitcoin pullback. However, BTC’s macro backdrop remains strong as softer inflation and rising adoption support long-term bullish momentum.
There will be more Bitcoin ATHs but I think we will see a pullback because alts are running too hot now. Once the altcoin mania passes, Bitcoin will take off. This is just how it’s always been. https://t.co/OZn3mTtgkC
— Samson Mow (@Excellion) August 13, 2025
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
