Bitcoin News Today: Bitcoin Surges 3.75% Near All-Time High as Fed Rate Cut Outlook Fuels Market Optimism

Bitcoin volatility remains elevated as markets prepare for a crucial week of economic data and potential policy cues that could shape the Federal Reserve’s rate trajectory. The cryptocurrency market has shown renewed strength, with Bitcoin nearing its all-time high and Ethereum hitting a near four-year peak. However, macroeconomic uncertainties, including inflation trends and trade tensions, continue to cloud broader risk assets.

Bitcoin’s price rose more than 3% early on Monday to reach a four-week high of $121,850, bringing it within $1,000 of its record $123,250 set in July 2025 [1]. The total crypto market capitalization also climbed 2% in a single day to a record $4.13 trillion [2]. Ethereum was a standout performer, rising to $4,320, just 11.5% below its 2021 peak [2]. Smaller altcoins, by contrast, remained largely flat, with only Hyperliquid and Chainlink posting gains of more than 4% [2]. The performance divergence highlights the market's concentration in top-tier assets amid broader uncertainty.

The recent rally in crypto appears to be part of a broader risk-on trend, as stock markets also posted gains despite ongoing concerns over trade tensions and geopolitical risks. Analysts suggest that signs of economic softness and the growing probability of a September rate cut—currently at 88% according to the CME Fed Watch tool—have fueled the optimism.

This week, markets will closely watch a series of inflation and consumer data reports. The core Consumer Price Index (CPI) is due on Tuesday and is expected to rise to 2.8% from 2.7% [2]. The Producer Price Index (PPI) will follow on Thursday, offering further insight into inflationary pressures at the production level. On Friday, retail sales data and consumer sentiment reports will be released, which could influence the Fed’s decision timeline and monetary policy direction.

In addition to economic data, the week includes five Federal Reserve speaker events, offering further insights into central bank thinking. The OPEC monthly report on Tuesday is also a key event, as it may shed light on global oil price expectations and inflation implications.

While the current bullish momentum has propelled Bitcoin and Ethereum to record highs, the week ahead will test whether this optimism can withstand potential macroeconomic headwinds. A significant inflation report or weaker-than-expected data could either reinforce the case for a rate cut or trigger renewed volatility in both crypto and equity markets.

Sources:

[1] AInvest - Bitcoin News Today: Bitcoin Surges 3.75% Near All-Time High

https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-3-75-time-high-halving-impact-gains-momentum-2508/

[2] CryptoPotato - Bitcoin Volatility: 4 Things That Could Move Crypto Markets This Week

https://cryptopotato.com/bitcoin-volatility-4-things-that-could-move-crypto-markets-this-week/