Bitcoin News Today: Bitcoin surges to $124,128 as ETF demand and dollar weakness drive rally

Bitcoin has experienced a notable price surge, reaching an all-time high of $124,128 amid favorable market dynamics. Experts have highlighted several contributing factors, including robust demand for Bitcoin exchange-traded funds (ETFs), a weakening U.S. dollar, and increasing expectations of Federal Reserve rate cuts. Institutional investors have been central to the ETF demand, with daily net inflows into treasury companies and Bitcoin ETFs reflecting a shift in capital toward digital assets as a preferred store of value in a low-yield environment [2]. Analysts project that if current conditions continue, Bitcoin could move toward the $140,000 to $160,000 range over the coming months [1].

The declining strength of the U.S. dollar has further enhanced Bitcoin’s appeal. As the greenback weakens against major currencies, investors are reallocating capital to alternative assets perceived as offering better returns. Bitcoin, long regarded as a hedge against inflation and currency devaluation, has gained traction in this context. Meanwhile, the anticipation of Fed rate cuts has reduced borrowing costs, encouraging a greater appetite for risk and speculative assets [3]. These macroeconomic forces are seen as key underpinnings for Bitcoin’s recent performance.

Despite a temporary dip in Bitcoin’s market dominance below 60%—marking the first time in six months—overall sentiment remains bullish. Analysts attribute recent price corrections, such as those following the U.S. producer price index (PPI) report, to profit-taking rather than a reversal in the broader trend. The core drivers of ETF inflows, dollar weakness, and rate-cut expectations continue to reinforce a long-term upward bias [4].

Looking ahead, market attention will remain fixed on Federal Reserve policy and macroeconomic data. A significant rate cut could provide additional momentum for Bitcoin, with its current price action suggesting a structural bull market. However, the asset’s inherent volatility and the potential for sudden shifts in investor sentiment or regulatory developments mean that the trajectory remains subject to change.

The convergence of ETF-driven demand, dollar depreciation, and monetary policy expectations continues to shape the narrative around Bitcoin’s rally. As institutions increasingly embrace the digital asset, the path to further appreciation hinges on the persistence of these favorable conditions and evolving macroeconomic developments.