Bitcoin News Today: Bitcoin surges to $124,457 record on Fed rate cut expectations and institutional buying

Bitcoin surged past its previous record high, briefly hitting $124,457 on Thursday, August 8, 2025, driven by mounting expectations for a Federal Reserve rate cut in September and a wave of institutional buying [1]. The cryptocurrency’s rapid ascent to a new all-time high reflected heightened optimism around monetary easing and speculative positioning, with the market pricing in a nearly 97% probability of a 25-basis-point cut [2]. However, the momentum quickly reversed as traders began taking profits, causing Bitcoin to retreat by 2.6% to $118,250 by 09:39 ET [1].

The move came amid increased corporate adoption of digital assets, with firms such as Metaplanet Inc and MicroStrategy continuing to expand their Bitcoin holdings. This trend, often referred to as “digital asset treasuries (DATs),” has played a key role in supporting BTC and ETH price action, according to Stan Low of Grvt. He emphasized the importance of monitoring share volumes and prices, noting that rising demand can create self-reinforcing price movements [1]. However, he warned that such upward reflexivity can just as easily reverse, drawing parallels to speculative frenzies in the 1920s [1].

Ether also experienced a sharp rally, reaching a near-record high of $4,786.54, just $100 below its 2021 peak. The second-largest cryptocurrency was similarly impacted by profit-taking, retreating to $4,546.86. Institutional buying, particularly from firms adopting a Bitcoin treasury strategy popularized by MicroStrategy, has extended to Ether, with some U.S. companies following similar purchasing patterns [1]. Standard Chartered recently raised its 2025 price target for Ether to $7,500 from $4,000, reflecting improved sentiment [1].

Other altcoins saw mixed performance following the initial rally. XRP fell 6%, Solana declined 4.7%, and Dogecoin dipped 8.4%. Grayscale’s plans for a Cardano ETF listing provided some support for the altcoin, which added 4.3% [1]. Meanwhile, Bullish Inc, a Peter Thiel-backed crypto exchange, saw its shares jump nearly 90% from its IPO price, signaling growing institutional confidence in the crypto sector [1].

Analysts have highlighted the Federal Reserve’s accommodative stance as a primary driver of the rally. The expectation of lower borrowing costs in response to softer inflation and slowing economic growth has created a favorable environment for risk-on assets like Bitcoin [3]. While some market observers, including analysts at CoinJournal, have suggested that Bitcoin could aim for $130,000 in the near term if institutional buying continues and macroeconomic conditions remain supportive [6], others remain cautious, noting that the sharp price movements reflect speculative trading rather than fundamental shifts [2].

Despite the pullback, the broader market sentiment remains bullish, with ETF inflows and macroeconomic data reinforcing the case for a Fed rate cut. However, the rapid ascent and subsequent decline of Bitcoin underscore the volatility inherent in the crypto market, with traders closely watching for signs of follow-through buying or renewed selling pressure in the coming weeks [8].

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Sources:

[1] Investing.com. (2025). Bitcoin price today: dips after hitting record high over $124k on rate cut bets. https://www.investing.com/news/cryptocurrency-news/bitcoin-price-today-hits-record-high-over-124k-on-rate-cut-bets-corporate-cheer-4190493

[2] Mitrade. (2025). Bitcoin Price Forecast: BTC pulls back after hitting a new all-time high. https://www.mitrade.com/insights/news/live-news/article-3-1039403-20250814

[3] EBC. (2025). Bitcoin Price Hits New High at $124K: Can It Go Higher? https://www.ebc.com/forex/will-bitcoin-price-hold-above-124k-now

[6] CoinJournal. (2025). What's next for Bitcoin after hitting a new ATH at $124k? https://coinjournal.net/news/whats-next-for-bitcoin-after-hitting-a-new-ath-at-124k-check-forecast/

[8] CoinDesk. (2025). BTC sets a new all-time high of $124k. https://www.coindesk.com/markets/2025/08/14/who-is-cashing-out-of-bitcoin-at-record-highs-above-usd120k