Bitcoin has smashed through its prior all-time high, climbing above $124,000 as traders increasingly bet on an interest rate cut from the U.S. Federal Reserve.
Key Points
- BTC now trades above $123K, marking a fresh record.
- Price jumped from an earlier low near $118,900.
- Gains follow growing expectations of a September Fed rate cut.
New Highs for BTC
Data from TradingView shows Bitcoin breaking past its July peak of around $123,090, pushing up to $124,400 during today’s rally. The move represents more than a 2% increase for the day after starting near $118,940.
This surge comes only a month after BTC’s last record, which preceded a major U.S. crypto policy milestone known as the GENIUS legislation. Ahead of this week’s U.S. inflation updates, BTC had already been edging higher in anticipation of fresh economic signals.
The Consumer Price Index came in at 2.7%, slightly cooler than expected, giving traders more confidence in a potential 25 basis-point cut from the Fed in September. Producer Price Index data, still to be released, is also expected to show steady inflation.
Some traders are even entertaining the idea of a 50 bps cut, after comments from U.S. Treasury Secretary Scott Bessent. A deeper cut could mean more liquidity flowing into risk assets like crypto, amplifying bullish sentiment.
Market Impact
The rally cements Bitcoin’s position as the world’s sixth-largest asset by market value, overtaking the likes of Google and Amazon. Only gold, Nvidia, Microsoft, and Apple remain ahead.
The surge has also pushed certain large BTC holdings to record valuations. Strategy’s Bitcoin stash, for example, is now worth $77.2 billion, according to the company’s co-founder.
El Salvador’s President Nayib Bukele posted an update on the nation’s holdings, revealing the country’s BTC portfolio is sitting on an unrealized gain exceeding $468 million after the latest price jump.
With the market in uncharted territory, the question now is whether BTC will continue into price discovery mode or take a breather with a pullback. Either way, the latest breakout has set the stage for what could be a pivotal few months for crypto.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
