Bitcoin has indeed broken its all-time high, reaching a new milestone. According to recent data, Bitcoin's price surged to $121,904.78, with a 2.17% increase in the last 24 hours. This breakthrough comes as traders anticipate a potential rate cut by the Federal Reserve, which could further boost the crypto market.
Some key factors contributing to Bitcoin's recent ATH include ¹ ²:
- Institutional Adoption: Growing interest from institutional investors, with companies like MicroStrategy accumulating more Bitcoin.
- Whale Accumulation: Large holders of Bitcoin, known as whales, have been accumulating more coins, with the number of addresses holding over 100 BTC reaching an all-time high of 18,996.
- Rate Cut Expectations: Traders expect a 25 basis points rate cut by the Federal Reserve in September, which could inject more liquidity into the market and boost risk-on assets like Bitcoin.
- Macroeconomic Conditions: Comments from U.S. Treasury Secretary Scott Bessent suggesting interest rates are "too constrictive" and might need to be lowered have also fueled the bullish sentiment.
Bitcoin's price movement has significant implications for the broader crypto market, with many analysts predicting that other assets like Ethereum will follow suit. Ethereum, in fact, has seen a substantial surge, gaining over 28% in the past week and approaching its own ATH of $4,891 ¹.
