BitcoinBTC) price hit a new all-time high above $123,231 on Wednesday on Coinbase, following a similar performance from the S&P 500 which rallied to a record high of 6,457.
Bitcoin’s rise to new levels comes just one day after US CPI July print revealed inflation at 2.7% over the past year, the same as June and lower than the 2.8% forecast. Overall CPI was up 0.2% in July versus 0.3% growth in June.
After the release of the FedWatch report, CME FedWatch showed that the odds for a rate reduction at the Federal Reserve meeting in September had risen to 93.9%.
Bitcoin has historically benefited from Fed rate reductions and a move away from quantitative tightening. Some crypto-investors also believe that the One Big Beautiful Bill of US President Donald Trump will lead to an increased spending spree, inflation, as well as heightened risk taking in financial markets.
The recent inflows into the Bitcoin and Ether ETFs has also attracted traders’ interest and contributed to the overall bullish market sentiment. Farside Investors X shows that the BTC ETF saw netflows of $65.9 millions, while the ETH ETF instrument had $523.9 in purchases.
The ETH ETF received its first $1 Billion inflow on Tuesday. While the Bitcoin ETF’s netflows are slowing, it has still seen $1.02 Billion inflows from Friday. The success of ETH is evidently boosting Bitcoin and other altcoins.
Hyblock data on the liquidation heatmap shows Bitcoin pushing past a short cluster at 122,500. Positions can be forced to close further up to 124,000. According to data from CoinGlass, nearly $2 billion worth of short positions could be liquidated if BTC prices are pushed through the liquidity cluster between $122,800 and $125,000.
Related: Bitcoin bulls charge at all-time highs as trader says $126K ‘pivotal’
Bitcoin has reached new heights, putting its market capital above $2.45 billion. The total cryptocurrency market cap is currently at an all-time high of $4.15 trillion.
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Source: cointelegraph.com
