This year, Bitcoin (BTC) has performed exceptionally well - the price has surpassed $124,000, with an increase of about 30-33% year-to-date, nearly double that of the same period last year! The interesting behind-the-scenes reasons for this surge include not only the favorable expectations of a possible interest rate cut by the Federal Reserve, but also a rise in investor risk appetite, along with a wave of policy benefits - an executive order from the U.S. president has allowed 401(k) retirement plans to engage with cryptocurrencies, opening a new door for both institutions and retail investors.

Snapshot: Price, Speed, Momentum

On August 14, 2025, market sentiment was hot, and traders were leaning towards high-risk assets, while institutional investors also increased their Bitcoin holdings, directly pushing BTC to a historic high of $124,002.49! Not just Bitcoin, **Ethereum (ETH)** also showed strength, refreshing its own cycle peak. Analysts pointed out that if BTC continues to break through $125,000, the next target could likely aim for $150,000.

Macro tailwinds support, Bitcoin's rally is swift

The market has long been prepared for a possible interest rate cut by the Federal Reserve in September, which is very favorable for risk assets like Bitcoin. Simply put: lower interest rates make the dollar slightly weaker, leading to capital flowing into the crypto market, pushing prices higher.

However, the U.S. Producer Price Index (PPI) released that day reminded everyone that the path to interest rate cuts is not smooth. The yield and dollar rebounded during the day, indicating that investors' expectations for a substantial rate cut by the Federal Reserve have some fluctuations. But overall, the larger direction of the Federal Reserve shifting towards easing remains favorable for Bitcoin, although the market may experience some minor fluctuations in the short term. #美国7月PPI年率高于预期 #加密市场回调