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    Bitcoin Price Today Hits New ATH at $123,600 on Fed Rate Cut Hopes

    Story Highlights
    • Bitcoin hits New ATH at $123,600 on Fed rate cut bets and cooling 2.7% inflation.

    • Institutions show confidence with $77.2B MicroStrategy holdings and big whale withdrawals.

    • Altcoins rally as Ethereum jumps 28% and miner reserves drop, easing sell pressure.

    Bitcoin has smashed through its old record, hitting $123,600 and sending a wave of excitement through the crypto world. The jump comes as traders bet big on a September Fed rate cut, with fresh inflation data showing prices cooling to 2.7%. Thereโ€™s even talk from US Treasury Secretary Scott Bessent about a bigger 50 bps cut, which could pump more money into the markets and fire up risk-taking. Riding the hype, Santiment celebrated Bitcoinโ€™s $123,610 peak as a proud milestone in its 17-year journey.

    Fed Rate Cut Fuels Liquidity Hopes

    A potential rate cut is a green light for increased liquidity in the market, offering a significant tailwind to both Bitcoin and altcoins. BTCโ€™s market cap has now leapfrogged Google and Amazon, ranking as the sixth-largest asset globally, with only gold and tech giants like Apple, Microsoft, and Nvidia ahead. This milestone has also boosted institutional portfolios. MicroStrategyโ€™s Bitcoin holdings have reached a record $77.2 billion, while El Salvadorโ€™s national BTC stash now sits on an unrealized profit of over $468 million.

    Whale Moves Signal Confidence

    Adding to the bullish tone, on-chain trackers flagged a massive whale withdrawal of 5,400 BTC (worth $656 million) from Kraken, likely destined for cold storage. While some suggested it could be a portfolio reshuffle, analysts believe it signals strong institutional accumulation. Large-scale withdrawals to private wallets often hint at long-term conviction and reduced sell pressure, factors that can help sustain price rallies.

    Miner Reserves Drop, Easing Sell Pressure

    One key factor supporting Bitcoinโ€™s rally is the sudden drop in miner reserves. Earlier this month, reserves climbed from 1,806,790 BTC on August 2 to 1,808,488 BTC on August 10, raising fears of increased selling from miners, a common rally killer. But just as BTC began breaking out, reserves fell to 1,806,630 BTC and have since stayed steady. This decline means less immediate selling risk, removing a major obstacle for bulls looking to push prices higher.

    Altcoins Join the Party

    Ethereum has followed Bitcoinโ€™s lead, rallying over 28% in the past week and inching closer to its own ATH of $4,891. Traders are now weighing whether this liquidity injection could trigger a broader breakout in altcoins. With Ethereumโ€™s options open interest hovering near record highs at $13.75 billion, derivative markets point toward incoming volatility.

    Market Outlook

    In the current situation, if liquidity from a Fed rate cut combines with rising ETF inflows and stablecoin adoption, the next phase of this rally could push Bitcoin deeper into price discovery and potentially ignite the long-awaited altcoin season. 

    Interestingly, Samson Mow, CEO of JAN3 and a long-time Bitcoin advocate sees two possible outcomes for Bitcoin now, either BTC surges massively, causing altcoins to drop 30โ€“40%, or altcoins rally first, then crash hard, with Bitcoin briefly dipping before moving higher again.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    FAQs

    Why is Bitcoin price up today?

    Bitcoinโ€™s price rose due to Fed rate cut bets, cooling inflation (2.7%), and institutional buying, fueling bullish market sentiment.

    How does a Fed rate cut impact Bitcoin?

    A rate cut increases market liquidity, encouraging risk-taking and investment in Bitcoin and altcoins as investors seek higher returns.

    Will Ethereum and altcoins follow Bitcoin’s rally?

    Yes, Ethereum (+28% weekly) and altcoins may surge if Fed liquidity boosts crypto markets, but volatility remains likely.

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