Bitcoin News Today: Bitcoin hits record $124,457 on Fed cut hopes and pro-crypto policies

Bitcoin climbed to a record high of $124,457 on Thursday, driven by increasing expectations of Federal Reserve rate cuts and favorable policy developments in the United States [1]. This surge marked a 3.6% rise from the previous day and surpassed the previous peak set in July. Ether, the second-largest cryptocurrency, also reached $4,780.04, its strongest level since late 2021 [1].

The price momentum was bolstered by a regulatory environment that has become increasingly supportive of digital assets. Following the re-election of President Donald Trump, who has labeled himself the “crypto president,” the administration has taken a series of pro-crypto steps, including the removal of barriers to 401(k) inclusion of cryptocurrencies and the nomination of a digital asset advocate to the Federal Reserve Board of Governors [1]. These moves have been praised by industry stakeholders as a historic shift that could expand consumer access and reduce operational risks for blockchain businesses [1].

The market is now almost entirely pricing in a Fed rate cut on September 17, according to recent reports, with some forecasts suggesting the possibility of a larger half-point reduction [1]. Trump has criticized Federal Reserve Chair Jerome Powell for maintaining rates for too long and has even hinted at replacing him before his term ends. Treasury Secretary Scott Bessent also called for a “series of rate cuts,” adding to the speculative pressure on the central bank to ease monetary policy [1].

Such policy shifts, according to analysts, could provide further tailwinds for risk assets, including cryptocurrencies [1]. The recent rise in Bitcoin is also supported by strong ETF inflows. Spot Bitcoin ETFs recorded a net inflow of $86.91 million on August 13, bringing cumulative inflows to $54.76 billion since their launch. Total net assets for these funds now amount to $156.69 billion, representing approximately 6.48% of Bitcoin’s market cap [1]. BlackRock’s iShares Bitcoin Trust leads with $89.11 billion in net assets, followed by Fidelity’s FBTC at $24.77 billion [1].

Institutional demand for Bitcoin has also grown steadily. According to data from BitcoinTreasuries.net, 3.65 million BTC is currently held by various entities, with the largest portion in ETFs and other funds, followed by public companies, governments, and private firms [1]. The United States leads with 99 entities holding Bitcoin, followed by Canada and the United Kingdom [1]. The site also noted an increase of 16 entities over the past 30 days, indicating a broadening base of institutional participation.

Bitcoin’s market capitalization has grown significantly in 2025, with the asset now ranked fifth among the world’s largest assets by market cap, surpassing Google [1]. This milestone underscores the growing acceptance of Bitcoin as a legitimate and influential component of the global financial system.

Market sentiment remains positive, with the Fear & Greed Index currently at 75, indicating a strong but not extreme level of investor optimism [1]. The index, which measures sentiment on a scale from 0 to 100, reflects sustained buying interest and confidence in the broader crypto market, likely fueled by strong ETF inflows and institutional participation [1]. While the index is not yet in the "Extreme Greed" territory, the current level signals that investors remain bullish, raising the risk of overbought conditions if the rally accelerates further [1].

The U.S. Securities and Exchange Commission (SEC) also contributed to the positive momentum by clarifying that certain liquid staking models are not securities [1]. SEC Chair Paul Atkins reaffirmed his commitment to fostering crypto innovation within the U.S. and signaled a shift toward proactive regulation rather than enforcement-led policies [1].

Collectively, these developments have created a supportive environment for Bitcoin and other digital assets, reinforcing the narrative of a long-term bull market driven by institutional adoption, favorable regulation, and macroeconomic tailwinds [1].

Source: [1] Bitcoin Climbs to New High Above $124K as Fed Rate-Cut Hopes Build (https://cryptonews.com/news/bitcoin-hits-new-all-time-high-above-124k/)