Bitcoin News Today: Bitcoin Surges Past $120K as Rate-Cut Hopes Boost Crypto Market to $4.2 Trillion

Cryptocurrencies surged across the board on Wednesday as Bitcoin (BTC) closed above $120,000 for the first time, extending a broader risk-on sentiment that has lifted the total crypto market cap to $4.2 trillion, a new all-time high [1]. The rally was supported by renewed optimism around U.S. inflation and employment data, which signaled easing inflationary pressures and a cooling labor market. July’s consumer price index (CPI) remained at 2.7% year-on-year, while core CPI edged up to 3.1%. The nonfarm payrolls report showed slower hiring, and the unemployment rate climbed to 4.2%, reinforcing expectations that the Federal Reserve could cut interest rates as soon as September [1].

Calls for aggressive rate cuts added to the bullish momentum. Treasury Secretary Scott Bessent and Donald Trump both advocated for significant monetary easing, with Trump pushing for a 300-basis-point cut [1]. The prospect of lower interest rates has driven investors toward risk assets, with crypto among the biggest beneficiaries. Institutional demand has also remained robust, as spot Bitcoin ETFs continue to attract inflows, with total assets under management rising to $54 billion [1]. Ethereum (ETH), the second-largest cryptocurrency, saw similar enthusiasm, with spot ETFs pulling in more than $1.7 billion in the past week alone [1].

The broader altcoin market followed suit, with nearly all top 100 tokens posting gains. Ethereum, currently at $4,644, is just under 6.4% away from its all-time high of $4,891, which it reached in November 2021. Traders are increasingly confident that ETH will break through $5,000 by the end of the quarter, with some analysts projecting a possible $7,500 target by year-end [1]. The surge in ETH has coincided with heavy selling from retail traders, a trend that historically has pushed prices in the opposite direction, according to blockchain analytics firm Santiment [1]. Institutional investors, meanwhile, appear to be stepping in, absorbing the selling pressure and enabling further gains.

Among the top performers, OKB (OKB), the native token of crypto exchange OKX, surged 127% following the announcement of a one-time token burn of over 65.2 million OKB. The move will cap the total supply at 21 million tokens, increasing scarcity and potentially enhancing value. OKX also announced plans to enhance its X Layer public chain, positioning it for growth in DeFi, payments, and real-world asset (RWA) applications [1]. Fartcoin (FARTCOIN) also saw significant gains, with its daily trading volume nearly doubling to over $712 million, signaling renewed speculative interest [1]. Arbitrum (ARB) continued its upward trajectory after decentralized lending platform Morpho launched on its network, adding to the broader market optimism.

Bitcoin’s immediate outlook remains mixed. Analysts like Daan Crypto Trades noted that BTC is still range-bound and will need to either break into price discovery or continue trading sideways to allow positions to build on both sides [1]. Rekt Capital, however, offered a more bullish view, noting that Bitcoin has confirmed a breakout from a bull flag pattern and that $120,000 has now become a new support level. He identified $126,000 as a key resistance level, suggesting that a breakout above it could set the stage for a new all-time high [1]. Meanwhile, some traders have warned of a potential pullback toward $110,000, citing short-term profit-taking and technical indicators [1].

The macroeconomic context continues to play a significant role in shaping investor sentiment. U.S. national debt has risen from $26.7 trillion in 2020 to over $37 trillion, a 38% increase in five years. Over the same period, Bitcoin has surged by over 925%, a correlation that some analysts believe could persist. Bitget’s Ryan Lee suggested that growing U.S. debt increases the likelihood of Bitcoin reaching new highs, while Real Vision’s Jamie Coutts noted that expanding global M2 money supply could be the next major catalyst for BTC, projecting a price of over $132,000 by the end of 2025 [1].

At press time, Bitcoin settled just above $121,000, having narrowly failed to break through $122,000. Despite this, the 1.3% gain over the past 24 hours reflects continued bullish momentum. With Ethereum approaching its previous peak and altcoins continuing to outperform, the crypto market appears to be in a strong phase of accumulation and optimism, driven by both macroeconomic tailwinds and institutional demand.

Source: [1]Crypto prices today: Bitcoin above $120k, ETH rally pushes OKB, FARTCOIN higher (https://invezz.com/news/2025/08/13/crypto-prices-today-bitcoin-above-120k-eth-rally-pushes-okb-fartcoin-higher/)