$BTC Hits New All-Time High Near $123,500
Bitcoin's price smashed through its previous record on Wednesday, reaching nearly $123,500 on Coinbase.
Why did this happen?
1. Good Inflation News: A key US report showed inflation in July didn't increase from June (it stayed at 2.7% compared to last year), and was slightly better than experts predicted.
2. Rate Cut Hopes: Because inflation seems to be calming down, traders now think it's almost certain (94% chance!) that the US central bank (the Fed) will cut interest rates in September.
3. Stock Market Boost: The positive inflation news also sent the S&P 500 stock index to a record high, showing overall market optimism.
Why do lower rates help Bitcoin?
* Experienced crypto investors believe that when the Fed cuts rates and makes money easier to borrow, it often benefits Bitcoin's price.
* They think this shift away from tight money policies makes investors more willing to take risks, which includes buying assets like Bitcoin.
Extra Boost from ETFs:
* Money flowing into Bitcoin and Ethereum ETFs (like investment funds) is also adding to the positive feeling.
* On Tuesday alone, the Bitcoin ETFs saw about $66 million in new money, while the Ethereum ETFs attracted a much larger $524 million.
In simple terms: Good news on inflation made traders very confident that cheaper borrowing (rate cuts) is coming soon. This optimism, plus strong demand for crypto investment funds (ETFs), pushed Bitcoin to a brand new record high.
