Bitcoin News Today: Bitcoin Soars to $124,100 All-Time High, Then Dives 5% on Inflation Fears

Bitcoin reached a record high of $124,100 on Wednesday, according to data from Binance, before retreating nearly 5% by the following day amid renewed inflation concerns [1]. The surge was initially fueled by optimism over the possibility of a September rate cut by the U.S. Federal Reserve, as inflation data from the Bureau of Labor Statistics showed a modest 2.7% increase in July [1]. Analysts suggested the prospect of easier monetary policy could shift investor capital from U.S. Treasuries to higher-risk assets like Bitcoin, according to CME Group’s FedWatch tool [1].

However, the market quickly reversed course after a revised report revealed a 0.9% monthly rise in U.S. producer prices—the largest increase since June 2022 [1]. This news, coupled with a broader pullback in risk assets, triggered a sharp sell-off in Bitcoin and other cryptocurrencies [1]. Ethereum, the second-largest cryptocurrency by market capitalization, also saw a 4% drop in the 24-hour period, though it remained near its own record highs [1]. The total crypto market capitalization fell nearly 4% in a single day to around $4.07 trillion [1].

Experts noted that the correction reflected a mix of profit-taking and macroeconomic uncertainty. “Bitcoin’s pullback after hitting an all-time high looks like a classic bout of profit-taking, amplified by macro jitters,” said Thomas Perfumo, global economist at Kraken [1]. Similarly, Axel Rudolph, senior technical analyst at IG, highlighted that the near certainty of U.S. rate cuts had lifted risk appetite and pressured the dollar, but recent data had shifted the narrative [1].

The recent price action underscores the continued sensitivity of Bitcoin to broader macroeconomic conditions. Despite the 5% drop, the cryptocurrency remains near historic levels, with the total crypto market cap still hovering above $4 trillion [1]. The sharp volatility highlights the ongoing challenges for investors in navigating the intersection of crypto and traditional financial markets, where economic data and central bank policy play increasingly critical roles [1].

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[1] Bitcoin hits all-time high before diving 5% on inflation fears - [https://fortune.com/crypto/2025/08/14/bitcoin-price-today-all-time-high-fed-rate-cuts-september-ppi-inflation/](https://fortune.com/crypto/2025/08/14/bitcoin-price-today-all-time-high-fed-rate-cuts-september-ppi-inflation/)