Bitcoin surpassed its previous all-time high today by briefly trading above $124,000, driven by rising anticipation of an interest rate cut in September and sustained institutional demand.
According to The Block’s bitcoin price page, the world’s largest cryptocurrency traded up 3.64% at $124,347 at around 8:30 p.m. ET. It has since pulled back to $123,868.
“Bitcoin’s rally to a new all-time high is being driven by strong optimism for a September rate cut, with the CME FedWatch Tool now pricing in a 93.7% probability,” said Min Jung, analyst of Presto Research.
Optimism surged following the latest U.S. CPI data, which showed U.S. consumer prices in July rose by a cooler-than-expected 2.7% year-over-year. The core CPI, which excludes food and energy prices, accelerated to 3.1%, slightly above expectations.
Still, a dovish shift from the Federal Reserve isn’t guaranteed. Fed Chair Jerome Powell has stated the central bank focuses on 12-month inflation, which makes the rise in core inflation a potential concern despite a cool-down in the headline number.
“Bitcoin’s price will likely remain highly sensitive to any developments — positive or negative — related to the September rate decision,” Jung said.
The rate cut anticipation has also driven Ethereum near its all-time high set in 2021, with the cryptocurrency currently trading up 2.3% at $4,717, according to The Block’s Ethereum price page.
Meanwhile, BTC Markets Crypto Analyst Rachael Lucas said bitcoin price is benefitting from a “perfect storm” of institutional demand from spot exchange-traded funds and corporate treasuries.
“Over the past month, BTC ETFs have added more than $3.6 billion, while corporate and sovereign treasuries now control 3.64 million BTC. [That’s] over 17% of the total supply,” Lucas said. “Combine that with strategic, long-term holdings and you have structural demand meeting finite supply.”
The BTC Markets analyst said bitcoin is set for sustained upward momentum through the rest of the year, while some consolidation is expected in the range between $120,000 and $125,000.
“But the combination of scarce supply and deep structural demand supports further gains through year-end,” Lucas said. “Long-term holders are confident, and Bitcoin and Ethereum are increasingly seen as core portfolio assets.”
© 2025 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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