Bitcoin surged to a new all-time high of $123,231, while Ethereum crossed the $4,500 mark and Binance Coin (BNB) climbed to $830 after U.S. inflation data met expectations. The rally follows the July Consumer Price Index (CPI) report showing inflation unchanged at 2.7% year-over-year, below the forecast of 2.8%, boosting investor confidence in imminent Federal Reserve rate cuts.
Macro Drivers Behind the Rally
Inflation Data: CPI held steady at 2.7% YoY, with a modest 0.2% MoM rise versus June’s 0.3%.
Rate Cut Expectations: CME FedWatch now shows a 93.9% probability of a September rate cut, as traders anticipate the Fed easing monetary policy.
ETF Inflows: Spot Bitcoin ETFs recorded $65.9M in net inflows, while Ethereum ETFs saw a record $1B daily inflow, driving liquidity across the market.
Correlated Risk Rally: The S&P 500 also reached a record 6,457, reflecting a broader risk-on sentiment.
Technical Outlook & Market Structure
BTC Resistance Zones: Hyblock liquidation heatmaps show a large short-squeeze cluster between $122,800–$125,500, with $2B in short positions at risk of forced closure.
ETH Momentum: Ethereum’s breakout past $4,500 has ignited bullish calls, with traders eyeing $5,000 as the next target.
BNB Strength: BNB’s push toward $850 highlights strong altcoin rotation alongside large-cap moves.
[Chart Suggestion]: Combined price-action chart with:
BTC and ETH price vs. CPI release date
Short liquidation clusters (Hyblock data overlay)
Exchange outflow spikes for ETH and BTC
Altcoin Market Reaction
Google Trends data shows “altcoin” search volume hitting a five-year high, suggesting retail interest is resurging. Mid-cap and AI-linked tokens are seeing double-digit gains, while Binance Futures added two new high-leverage contracts (AIOUSDT and XNYUSDT), potentially drawing speculative flows, according to Cointelegraph.
Prospects & Risks Ahead
Upside Potential:
BTC could challenge $125K–$126K if liquidation cascades continue.
ETH’s ETF momentum may push it toward the $5,000–$5,500 zone in the short term.
Downside Risks:
Stronger-than-expected economic data could delay Fed cuts.
Overleveraged positions increase the risk of sharp corrections.
