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Bitcoin News: Bitcoin reaches $123,000, Ethereum surpasses $4,500 as inflation data fuels cryptocurrency surge
Bitcoin jumped to an all-time high of $123,231, while Ethereum surpassed the $4,500 mark and Binance Coin (BNB) rose to $830 after U.S. inflation data came in line with expectations. This increase follows the July Consumer Price Index report, which showed that inflation remained steady at 2.7% year-over-year, below the expected 2.8%, boosting investor confidence in imminent interest rate cuts from the Federal Reserve.
The macro drivers behind the rise
Inflation data: The Consumer Price Index remained steady at 2.7% year-over-year, with a slight monthly increase of 0.2% compared to 0.3% for June.
Rate cut expectations: CME FedWatch now shows a 93.9% probability of an interest rate cut in September, as traders anticipate the Federal Reserve easing its monetary policy.
ETF inflows: Bitcoin spot ETFs recorded $65.9 million in net inflows, while Ethereum ETFs saw a record daily inflow of $1 billion, enhancing liquidity across the market.
Concurrent risk rise: The S&P 500 also reached a record level