Bitcoin News Today: Bitcoin Surpasses Alphabet in Market Cap Amid CPI-Driven Rally and Institutional Demand

Bitcoin has recently achieved a historic milestone by surpassing Alphabet Inc.—Google’s parent company—in market capitalization, briefly claiming the fifth spot among the world’s most valuable assets [2]. At one point on August 12, 2025, Bitcoin surged to an all-time high of $124,457, pushing its market cap close to $2.5 trillion [3]. This development marked a turning point in the narrative around Bitcoin, as it demonstrated its growing acceptance as a legitimate store of value alongside traditional blue-chip equities and global commodities.

The rally was driven by a confluence of factors, including rising institutional demand for Bitcoin products and optimism about U.S. economic data, particularly the Consumer Price Index (CPI) [7]. Analysts observed that the broader cryptocurrency market benefited from this environment, with Bitcoin leading the charge. A week following the CPI release, Bitcoin rose 4.51%, further solidifying its upward momentum [7].

Concurrently, Google made a significant policy shift by reversing its decision to ban non-custodial crypto wallets from its Play Store [2]. This move ensured that Android users could continue using platforms like MetaMask and Trust Wallet, reinforcing the principles of decentralization and self-sovereignty. The reversal was widely interpreted as a win for the crypto ecosystem, as it removed a potential barrier to adoption and preserved the narrative of user control [2].

Despite Bitcoin’s dominance, the market is showing signs of fragmentation. Data from Google Trends suggests that interest in altcoins is increasing, with Bitcoin’s market share appearing to weaken [5]. Some analysts have projected that Bitcoin could reach as high as $130,000 in the near term, with speculative forecasts extending to $200,000 by year-end [1]. However, these price targets are not grounded in confirmed market fundamentals and remain largely theoretical.

The next critical test for Bitcoin will come with the release of key U.S. economic data, including the Producer Price Index (PPI), Core PPI, and Initial Jobless Claims [2]. These reports will provide insights into inflationary pressures and labor market health, both of which influence Federal Reserve policy decisions. A lower PPI or Core PPI could signal easing inflation, potentially leading to interest rate cuts and increased liquidity, which are generally bullish for Bitcoin [2]. Conversely, higher inflation readings or a strong labor market could delay rate cuts, increasing pressure on risk assets like Bitcoin [2].

The market's response to this data is expected to be swift and volatile. Before the release, traders are likely to adopt a cautious approach, with reduced liquidity and erratic price movements [2]. Following the data release, volatility is expected to spike, with the potential for Bitcoin to either rally toward $130,000 or face a sharp correction, depending on the readings [2].

With the clock ticking and global attention on the U.S. economic landscape, the coming days will determine whether Bitcoin can maintain its position above Alphabet Inc. or if the tech giant will reclaim its spot as the fifth most valuable asset in the global economy [2].

Source: [1] Why Bitcoin Is Surging? BTC Price Prediction to $200K as ... (https://www.tradingview.com/news/financemagnates:f4304b1eb094b:0-why-bitcoin-is-surging-btc-price-prediction-to-200k-as-market-cap-flips-google/)

[2] Bitcoin vs Google: Can BTC Keep Its Lead After U.S. Data Release? (https://coinmarketcap.com/community/articles/689dd3188bd3b9499f4ce8b9/)

[3] Bitcoin Price Prediction: BTC Breaks To New High, Experts ... (https://icobench.com/news/bitcoin-price-prediction-btc-breaks-to-new-high-experts-eye-200k/)

[5] Altcoin Interest Hits New Highs Amid Bitcoin Weakening (https://bitcoinist.com/altcoin-interest-hits-new-highs-amid-bitcoin-weakening-google-trends/)

[7] Bitcoin Rises 4.51% on CPI Optimism Amid CME Gap ... (https://www.ainvest.com/news/bitcoin-news-today-bitcoin-rises-4-51-cpi-optimism-cme-gap-concerns-2508)