Bitcoin News Today: Bitcoin Surges Past $123000 Amid ETF Inflows and Fed Rate Cut Hopes

Bitcoin briefly fell below $123,000 in late July, marking a short-term pullback amid broader market volatility and a cautious outlook from analysts, who had previously identified the $116,000 level as a critical support area [3]. This correction occurred just days before the asset surged past $123,000 again, setting a new record on August 8 and demonstrating its resilience [1]. Analysts had anticipated the dip as part of a normal price correction cycle, expecting a rebound if key support levels remained intact [3]. The prediction proved accurate, as Bitcoin regained upward momentum and reached as high as $123,500 within a week [4].

The decline was attributed to factors such as market profit-taking and heightened sensitivity to macroeconomic developments. Institutional adoption and expectations of easier monetary policy were key drivers in Bitcoin’s recovery. The asset continued to attract substantial inflows into exchange-traded funds (ETFs), with over $66 million in new capital entering the market within a 24-hour period [5]. These inflows, along with a weakening U.S. dollar and anticipation of Federal Reserve rate cuts, further supported Bitcoin’s upward movement [7].

Despite reaching record highs, Bitcoin’s realized profits remained relatively modest compared to earlier peaks in January and July. Daily realized profits stayed below $750 million, significantly lower than the $2 billion levels observed during earlier surges [8]. This indicates that while the price was rising, large-scale profit-taking had not yet occurred, suggesting a more measured and controlled phase of the bullish trend.

Looking forward, the $123,000 level became a key resistance point for traders and analysts. A sustained close above this level could push Bitcoin toward $125,000 or even $137,000. Conversely, a failure to maintain momentum could result in a retest of the $116,000 support [3]. The market remains underpinned by strong fundamentals, including growing institutional interest and a broader shift in sentiment toward digital assets.

Bitcoin’s performance also reflected a broader trend in global markets, with its record highs coinciding with a strong rally in the S&P 500 Index [4]. This alignment highlights the ongoing influence of macroeconomic factors in shaping investor behavior across asset classes.

Sources:

[1] Bitcoin Price Breaks $123000, Bullish Momentum Targets ... (https://bitcoinmagazine.com/markets/bitcoin-price-breaks-123000-bullish-momentum-targets-125000)

[3] Bitcoin hits new all-time high: BTC may touch $125K as it ... (https://m.economictimes.com/news/international/us/bitcoin-hits-new-all-time-high-btc-may-touch-125k-as-it-skyrockets-amid-market-frenzy-is-now-the-moment-to-dive-into-crypto/articleshow/123291582.cms)

[4] Bitcoin Surges 12% to New High as S&P 500 Rallies (https://www.ainvest.com/news/bitcoin-surges-12-high-500-rallies-2508/)

[5] Bitcoin smashes all-time highs - Yahoo Finance (https://finance.yahoo.com/news/bitcoin-smashes-time-highs-233228944.html)

[7] Weaker Dollar And Fed Shift Push Bitcoin To Records (https://finimize.com/content/weaker-dollar-and-fed-shift-push-bitcoin-to-records)

[8] Bitcoin Price (BTC) Analysis: Realized Profits Below ... (https://www.coindesk.com/markets/2025/08/12/bitcoin-profit-taking-appears-modest-even-near-all-time-high)