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

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%. There’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 Bitcoin’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. BTC’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. MicroStrategy’s Bitcoin holdings have reached a record $77.2 billion, while El Salvador’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 Bitcoin’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.

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Altcoins Join the Party

Ethereum has followed Bitcoin’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 Ethereum’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 30–40%, or altcoins rally first, then crash hard, with Bitcoin briefly dipping before moving higher again.

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