Bitcoin Hits $124K ATH, Ethereum Nears Record on Fed Rate-Cut
Bitcoin surged to a new all-time high of $124,000 Wednesday evening, surpassing last month’s $123,000 record. The rally lifted BTC above Alphabet and Amazon by market capitalization, reclaiming the fifth-largest asset spot. Data from TradingView shows Bitcoin has gained 7% in the past week. Gains are fueled by expectations of a September Fed rate cut amid weaker-than-expected US job growth and inflation aligning with forecasts. Institutional interest remains strong, with US Treasury Secretary Scott Bessent calling for a 50-basis-point cut. Ethereum also experienced a rally, trading around $4,700—just 3% below its November 2021 peak. On the altcoin front, OKX’s OKB led daily gains with a 134% jump. Other exchange tokens, including Bitget’s BGB, Gate’s GT, and KuCoin’s KCS, plus Ethereum layer-2 coins Optimism (OP) and Arbitrum (ARB), posted significant increases. This broad market surge underscores renewed investor confidence and highlights the crypto market’s sensitivity to monetary policy shifts.
Bullish
The surge of Bitcoin to $124K and Ethereum near record highs signals a bullish market driven by macro factors like anticipated Fed rate cuts. Similar rallies occurred in late 2020 when rate reductions and quantitative easing boosted crypto demand. Strong institutional interest and lower borrowing costs typically support risk assets. In the short term, this news may draw speculative traders, increasing volatility and liquidity in BTC and ETH markets. Exchange and layer-2 tokens could maintain momentum as traders seek leveraged gains. Over the longer term, if the Fed implements rate cuts and inflation remains in check, crypto assets may establish higher support levels, fueling a sustained uptrend. However, traders should closely monitor policy updates and macroeconomic data, as shifts could trigger corrective pullbacks.