Catenaa, Thursday, August 14, 2025-Bitcoin surged to a record high above $124,000 on Wednesday, lifted by expectations of a September US interest rate cut and persistent institutional buying.
The largest cryptocurrency peaked at $124,347 before easing to $123,868, data from The Block showed.
Analysts cited optimism following US inflation data for July, which showed headline consumer prices rising 2.7% year-over-year, cooler than expected.
The CME FedWatch Tool now assigns a 93.7% probability to a September rate reduction. Core inflation, excluding food and energy, rose 3.1%, slightly above forecasts, leaving the Federal Reserve’s next move uncertain.
Market strategist Min Jung of Presto Research noted that Bitcoin remains highly sensitive to developments ahead of the rate decision. Fed Chair Jerome Powell has emphasized the central bank’s focus on annual inflation trends, meaning the rise in core prices could temper dovish expectations.
Ethereum also climbed, advancing 2.3% to $4,717, nearing its 2021 peak. BTC Markets analyst Rachael Lucas described current conditions as a “perfect storm” of demand from spot exchange-traded funds and corporate treasuries.
Over the past month, BTC ETFs added more than $3.6 billion, while corporate and sovereign treasuries now hold 3.64 million BTC, about 17% of total supply. Lucas said structural demand combined with limited supply supports further gains, though some short-term consolidation between $120,000 and $125,000 is likely.
Analysts expect Bitcoin’s upward momentum to persist through year-end as long-term holders remain confident and both Bitcoin and Ethereum solidify their status as core portfolio assets.
