Bitcoin Hits New All-Time High
On Wednesday, Bitcoin (BTC) surged beyond $123,231 at Coinbase, setting a new all-time high.
This increase in Bitcoin’s value occurred just one day after the US Consumer Price Index (CPI) report showed inflation stabilizing at 2.7% year-on-year. The data reflected a 0.2% rise in overall CPI, compared to a 0.3% increase noted in June.
Following the report’s release, the CME FedWatch tool indicated a significant market expectation, with the likelihood of Federal Reserve interest rate cuts climbing to 93.9% for its September meeting.
Many long-term investors in the crypto space have been looking forward to the economic strategies proposed by US President Donald Trump, which are believed to encourage spending and, ultimately, stoke inflation and risk appetite in financial markets.
The introduction of Bitcoin and etheric spot ETFs seems to have caught the attention of traders, contributing to an overall optimistic sentiment across the market. According to the Farside Investors X account, BTC ETF net flows have reached $65.9 million.
Moreover, on Tuesday, the ETH ETF welcomed its first billion-dollar inflow, continuing to add to its total of $1.02 billion since Friday, despite a slowdown in Bitcoin ETF net flows. Clearly, ETH’s success is positively impacting sentiments toward both Bitcoin and alternative coins.
Recent data from High Block indicates that Bitcoin is clearing short positions, especially around the $122,500 mark. Coinglass analysis suggests that there’s nearly $2 billion in short positions that could face liquidation if BTC prices surpass liquidity levels between $122,800 and $125,500.
Bitcoin’s market capitalization now exceeds $2.45 trillion, with the overall cryptocurrency market capitalization reaching an unprecedented $4.15 trillion.
