Key Takeaways
- Bitcoin new ATH hits $124,457, up 32% YTD.
- Surprisingly soft July CPI (2.7% vs. 2.8% expected) boosts Fed rate cut odds to 93%.
- Trump’s crypto-friendly policies (GENIUS Act, 401(k) crypto push, amplify rally.
- Analysts eye $136 as the next stop as BTC supports a key level.
Table of Contents
The Perfect Storm for Bitcoin New ATH
Massive! The Bitcoin new ATH is not just smashing records, it’s rephrasing them. The number one crypto recorded its fourth all-time high since last January, hitting $124,457, per CoinMarketCap, as a storm of macroeconomic and political factors played an important role.
The short-term trigger? Wednesday’s Consumer Prices Index (CPI) number was released softer than expected, and traders rushed to price in a 25 basis point (bp) rate cut for September. As Treasury yields decreased and the dollar index (DXY) dropped 0.5%, risk assets of all kinds, from equities to cryptos, enjoyed truckloads of bids. But this may be a textbook monetary policy fueling a risk rally.
For you to have a clearer idea, in June, core inflation, or core CPI (which doesn’t include the unpredictable costs of food and energy), went up by 0.3%. That’s the biggest jump in six months only, outpacing July’s 0.2% rise, according to the latest report from the Bureau of Labor Statistics.
On the other hand, annual core prices rose to 3.1% in July from 2.9% in June, indicating rising goods costs are no longer offset by cheaper services.
Core services also increased: Shelter up 0.2% for the second consecutive month. Transportation and medical care services each climbed 0.8% (up from June’s 0.2% and 0.6% gains, respectively).
Coming back to Bitcoin new ATH, the groundwork was laid before all os this. Since the beginning of this year:
✅ Spot Bitcoin exchange-traded funds (ETFs) have absorbed massive inflows
✅ Corporate balance sheets (led by MicroStrategy, holding 628,946 BTC at the time of writing) added more than 300K BTC
✅ Regulatory clarity came in the form of Trump’s GENIUS Act and the surprising crypto 401(k) plan
Outside of the Fed: Bitcoin New ATH Trump Effect
Public policy supporting crypto from the White House has become a forcing function. By calling himself the “crypto president.” The outcome? Institutional ‘fear of missing out’ (FOMO) met the retail euphoria. Even Ether joined the party at $4,780, its highest since 2021, getting a good push from Ethereum’s overall decentralized finance (DeFi) ecosystem.
Next Steps?
Technical charts indicate that $130 and $136,000 could be the next stops if Bitcoin holds $120K support. Fundamental analysts are more optimistic; some, like Standard Chartered, are predicting $200K if ETF inflows continue by year-end.
As always, risks are still there. The Federal Reserve could potentially delay rate cuts until next year, or new regulations impacting the crypto market could appear; stay alert. But the trend is very clear: Bitcoin keeps going up.
How does the Consumer Prices Index (CPI) data affect Bitcoin (BTC?
Lower inflation → Higher rate cut odds → Weaker dollar → Better conditions for risk assets like Bitcoin (BTC).
What’s the GENIUS Act?
A Trump-signed law creating federal rules for stablecoins, reducing regulatory uncertainty for digital assets.
Why $136K is the next Bitcoin (BTC) stop?
Analysis shows Bitcoin (BTC) broke from a pattern called the “rising wedge”, with $136K as the next resistance level.
For more crypto news, read: U.S. Bankers Warn GENIUS Act Loophole Could Drain $6.6 Trillion From Banks
