Bitcoin Reaches Record High of $124,000 Amid Four Key Factors
The cryptocurrency market is experiencing a rally due to expectations of a Federal Reserve interest rate cut following a higher-than-expected core inflation reading. Key highlights include:
- The CoinDesk 20 index rose over 1% in the last 24 hours.
- Bitcoin reached a record high above $124,000, while Ether increased by 2.2% to $4,750.
- Core inflation data has led traders to assign an 80% probability of a 25 basis-point cut in September.
- Institutional demand for Ether ETFs surged with $2.27 billion in inflows this week.
- Bitcoin treasuries have increased holdings by approximately 3.36% over the past month.
- The market benefits from anticipated rate cuts, regulatory support, reduced geopolitical tensions, and rising institutional interest.
Upcoming events of interest:
- Aug. 15: Next FTX distribution date for eligible holders.
- Aug. 18: Coinbase Derivatives to launch nano SOL and nano XRP perpetual futures.
- Aug. 20: Qubic will undergo its first halving event.
Market movements show Bitcoin at $121,693.52 (down 0.98%), Ether at $4,760.09 (up 0.92%), with the CoinDesk 20 index at 4,417.7 (up 0.53%). Futures positioning indicates light activity despite Bitcoin's rise.
Notable statistics include:
- BTC Dominance: 59.32
- Ether/BTC Ratio: 0.03906
- Total Bitcoin holdings in ETFs: ~1.3 million
- Total Ether holdings in ETFs: ~6.12 million
Investors should monitor upcoming Producer Price Index (PPI) data for insights on Federal Reserve policy.