Bitcoin rose to $124,000 before declining over 5% due to a higher-than-expected US producer price index, signaling potential broader inflation. This raised concerns about potential interest rate cuts in September, leading to long liquidations wiping out over $1 billion in crypto markets. Treasury Secretary Scott Bessent is seemingly walking back from previous bullish positions, by not planning to buy Bitcoin for the US strategic reserve and not revaluing gold holdings. Adam Back proposes using the peak between two halving dates as a way to look at the 4 year cycle suggesting new all time highs are still likely. A low probable chance for U.S. fiscal situation due to political and donation intentions that make US government support of Bitcoin a difficult situation that wont affect the long term future of Bitcoin.