Bitcoin News Today: Bitcoin Hits $124 500 as Trump Policies and ETF Inflows Drive Crypto Rally

Bitcoin reached an all-time high of $124,500 on August 5, 2025, fueled by a combination of positive U.S. market sentiment and shifting regulatory dynamics under the Trump administration [6]. The surge reflects a broader shift in investor focus, with key economic data and policy developments enhancing confidence in digital assets [7]. Ethereum followed suit, surging by 30% in a week and nearing new highs, signaling a potential altcoin rally [3].

The recent U.S. Producer Price Index (PPI) data significantly impacted market sentiment. For July, the PPI came in at 3.3%, well above the expected 2.5%, while the core PPI rose to 3.7%, surpassing the forecast of 3%. These figures, much higher than previous readings, acted almost as an emergency sell signal, raising concerns about inflationary pressures and potentially delaying a Fed rate cut in September [1]. Despite these risks, the crypto market has remained resilient, with Bitcoin ETFs attracting $19 billion in inflows and Ethereum ETFs drawing $7 billion in 2025 [5], underscoring growing institutional interest in the sector.

Regulatory developments have also played a pivotal role in legitimizing crypto as an asset class. The proposed GENIUS Act has provided a clearer legal framework, attracting major players like BlackRock and ARK Invest [1]. Additionally, the recent SEC settlement involving XRP has removed regulatory barriers, further boosting confidence [8]. Bullish, a crypto exchange backed by Peter Thiel, saw its shares surge 83% following its IPO on August 13, reaching a near-$10 billion valuation. The company raised $1.1 billion and now holds 24,000 Bitcoin and 12,600 Ethereum in its liquidity buffer [1], although its Q1 2025 financials showed a $349 million net loss, highlighting the financial challenges in the sector.

Standard Chartered has forecast Bitcoin to reach $200,000 by year-end 2025, though this is based on analyst projections and not current market performance [4]. Meanwhile, the broader crypto rally has been amplified by Trump-era pro-crypto policies and a reversal of prior restrictions, encouraging more institutional-grade infrastructure development [2]. However, the sustainability of this momentum remains uncertain, as market participants must determine whether gains are driven by speculative trading or long-term fundamentals [1].

Bitcoin briefly retreated to $120,000 following the PPI data release, with Ethereum sliding to the $4,650 range, suggesting further sell-offs could follow as markets process the latest economic signals [1]. The recent performance highlights the increasing interplay between macroeconomic indicators and crypto market movements, with investors closely watching for further data and policy shifts that could influence sentiment.

Source:

[1] The Crypto Exchange's Volatile Post-IPO Surge (https://www.ainvest.com/news/crypto-exchange-volatile-post-ipo-surge-frenzy-fundamental-shift-2508/)

[2] Trump-fueled crypto frenzy sparks rush to Wall Street IPOs (https://finance.yahoo.com/news/trump-fueled-crypto-frenzy-sparks-100243784.html)

[3] Altcoin Season Close as Ethereum Surges 30% in a Week (https://www.mitrade.com/insights/news/live-news/article-3-1039572-20250814)

[4] Why Bitcoin Is Surging? BTC Price Prediction to $200K as ... (https://www.financemagnates.com/trending/why-bitcoin-is-surging-btc-price-prediction-to-200k-as-market-cap-flips-google/)

[5] Bitcoin all-time high surge decoded: What's fueling the rise ... (https://m.economictimes.com/news/new-updates/bitcoin-all-time-high-surge-decoded-whats-fueling-the-rise-in-cryptocurrency-could-it-hit-150000-and-whats-next/articleshow/123300086.cms)

[6] Crypto Market Surges as Key Economic Data Shifts ... (https://en.coin-turk.com/crypto-market-surges-as-key-economic-data-shifts-investor-focus/)

[7] Bitcoin Sets Record As Investors Bet On Rate Cuts (https://finimize.com/content/bitcoin-sets-record-as-investors-bet-on-rate-cuts)

[8] 3 Reasons XRP Is Surging Right Now (https://www.aol.com/3-reasons-xrp-surging-now-115300386.html)