Bitcoin News Today: Bitcoin Climbs Near All-Time High on Fed Rate Cut Hopes and Strong ETF Inflows

Bitcoin is trading near its all-time high of $123,218, having surged to $122,000 in early August 2025, as anticipation builds ahead of the release of key U.S. inflation data later in the week [1]. The cryptocurrency has gained more than 3.75% in a single day, with a 7-day increase of 5.92%, pushing the total crypto market cap to $4.13 trillion [2]. Following a brief pullback to $116,600, Bitcoin has regained momentum, climbing above $120,000 and now testing critical resistance levels close to its historical peak [4].

The recent rally has been supported by a favorable macroeconomic backdrop, particularly expectations of a potential Federal Reserve rate cut in September. With the CME FedWatch tool indicating an 88% probability of a rate cut ahead of the central bank’s next policy meeting, investors are increasingly allocating capital to risk assets like Bitcoin [8]. Institutional demand has also been bolstered by strong inflows into Bitcoin ETFs, further reinforcing the bullish trend [6].

Market participants are closely watching the upcoming release of the July Consumer Price Index (CPI) data, scheduled for Tuesday, August 13. The CPI is a key indicator for assessing inflationary pressure and will be closely monitored to gauge the Fed’s future policy trajectory. If the data shows disinflationary trends, as hinted by some Fed officials, it could reinforce expectations of rate cuts and provide additional upward momentum for Bitcoin [5].

Traders are also hedging potential downside risks through the options market, with increased activity seen in Bitcoin put options in the $115,000 to $118,000 range. At the same time, call options indicate continued buying interest, reflecting a mixed outlook ahead of the CPI release [4].

Ethereum has also seen a strong performance, rising nearly 21% in recent days to trade at a near-four-year high of $4,320. However, most other cryptocurrencies have remained relatively flat, with only a few altcoins like Hyperliquid and Chainlink showing notable gains [10]. Analysts note that while the overall market sentiment remains positive, ongoing geopolitical tensions and trade uncertainties could introduce volatility in the near term [11].

Bitcoin is currently priced at $121,163.83, with a market capitalization of $2.41 trillion and a fully diluted market cap of $2.54 trillion. The 24-hour trading volume has increased by 27.91%, reflecting heightened activity in the market [4]. A breakout above the key Fibonacci resistance level at $122,056 could signal a continuation of the bullish trend toward new record highs [7].

Bitcoin's performance has aligned with broader risk-on sentiment, as U.S. equities also showed gains despite lingering macroeconomic uncertainties. This suggests that investors are increasingly viewing Bitcoin as part of a diversified portfolio, particularly in anticipation of central bank easing [1].

With the CPI data release just days away, market participants are preparing for potential volatility. A lower-than-expected CPI reading could cement expectations of a Fed rate cut, potentially triggering another wave of optimism for risk assets including Bitcoin [5].

Sources:

[1] Bitcoin Nears Record High as Analysts Predict $130K Breakout Ahead of Key CPI Data (https://coinpedia.org/news/bitcoin-nears-record-high-as-analysts-predict-130k-breakout-ahead-of-key-cpi-data/)

[2] Bitcoin News Today: Bitcoin Surges 3.75% Near All-Time High as Fed Rate Cut Outlook Fuels Market Optimism (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-3-75-time-high-fed-rate-cut-outlook-fuels-market-optimism-2508/)

[4] Bitcoin Price Climbs Back Above $120k | Market Pulse (https://fxopen.com/blog/en/oa-bitcoin-price-climbs-back-above-120k/)

[5] Bitcoin Price Hovers at $122K, Eyes $123K Breakout to New Highs (https://www.analyticsinsight.net/bitcoin/bitcoin-price-hovers-at-122k-eyes-123k-breakout-to-new-highs)

[7] Bitcoin Bulls Take Another Shot at the Fibonacci Golden Ratio Above USD122K as Inflation Data Looms (https://www.coindesk.com/markets/2025/08/11/bitcoin-bulls-takes-another-shot-at-the-fibonacci-golden-ratio-above-usd122k-as-inflation-data-looms)

[8] 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/)