Bitcoin News Today: Bitcoin Surges Past $123K as Fed Rate-Cut Expectations Fuel Rally

Bitcoin’s price surged past $123,000 on August 13, 2025, marking a new all-time high and reflecting growing optimism around a potential Federal Reserve rate cut in September [2]. This development comes in the wake of lower-than-expected U.S. Consumer Price Index (CPI) data and ongoing speculation about monetary easing, which has driven increased liquidity into risk-on assets like Bitcoin [2].

Traders have priced in a 25-basis-point rate cut ahead of the Fed’s September meeting, a move that analysts suggest could further support Bitcoin’s upward trajectory [2]. The cryptocurrency’s rally was fueled by sustained institutional demand and continued inflows into spot ETFs, with Bitcoin ETFs accumulating over $54 billion in assets [10]. Ethereum also saw a 28% gain in the past week, pushing it closer to its own ATH [2]. Altcoins such as Solana, Binance Coin, and XRP followed the broader market’s bullish trend, posting notable gains [10].

Bitcoin’s 8-hour chart showed a nearly 9% increase since early August, with the price approaching a record high at $123,217.39 [4]. This follows its previous high of $123,091 in July, and signals a continuation of its recent upward momentum. The rally has also coincided with the Crypto Fear and Greed Index moving into the "greed" zone at 63, a sign of increased market confidence [2].

The recent inflation report, which showed U.S. core CPI at 3.1% and a rise in the unemployment rate to 4.2%, has reinforced expectations for a dovish Fed policy shift. Treasury Secretary Scott Bessent publicly supported a 0.50% rate cut, while Donald Trump called for a 300-basis-point reduction, further amplifying market speculation [1].

Despite the optimism, some analysts have warned of potential risks. James Toledano of Unity Wallet noted that while institutional demand supports the rally, traders remain cautious. Additionally, Bitcoin’s price pattern suggests the formation of a potential double-top at $123,000, with a neckline at $112,000. A confirmed reversal at this level could lead to a broader market correction [10].

The broader financial market has also shown increased risk-on sentiment. The CNN Money Fear and Greed Index reached 66, signaling optimism across asset classes. Major indices like the S&P 500 and Nasdaq 100 also reached record highs [10].

Looking ahead, the market is closely monitoring the upcoming August CPI data, which will provide further clarity on the likelihood of a September rate cut. Analysts suggest that if the data aligns with expectations, the Fed may maintain a dovish stance, potentially allowing Bitcoin to exceed its current all-time high [7].

Sources:

[1] CoinGape, [https://coingape.com/bitcoin-price-hits-new-all-time-high-as-traders-price-in-25-bps-rate-cut/](https://coingape.com/bitcoin-price-hits-new-all-time-high-as-traders-price-in-25-bps-rate-cut/)

[2] Blockonomi, [https://blockonomi.com/bitcoin-price-hits-new-ath-above-123000-with-rate-cut-expectations/](https://blockonomi.com/bitcoin-price-hits-new-ath-above-123000-with-rate-cut-expectations/)

[4] Mitrade, [https://www.mitrade.com/insights/news/live-news/article-3-1033076-20250812](https://www.mitrade.com/insights/news/live-news/article-3-1033076-20250812)

[7] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-bitcoin-awaits-august-cpi-price-hovers-120k-key-inflation-data-2508/](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-awaits-august-cpi-price-hovers-120k-key-inflation-data-2508/)

[10] crypto.news, [https://crypto.news/why-are-bitcoin-and-altcoins-like-solana-bnb-xrp-going-up-today-13-8/](https://crypto.news/why-are-bitcoin-and-altcoins-like-solana-bnb-xrp-going-up-today-13-8/)