Bitcoin soared to a fresh all-time high of $124,400 on August 14, pushing the overall cryptocurrency market capitalisation to a record $4.18 trillion. The rally is being driven by a mix of macroeconomic optimism, institutional demand, and policy tailwinds, analysts said.
"Bitcoin hit a fresh all-time high of $124,400, taking the overall crypto market cap to a record $4.18 trillion. Multiple factors, such as strong optimism for a September rate cut, corporate accumulation, consistent ETF inflows, and bullish derivatives activity, have contributed to the rally. Moves by the Trump administration to ease investment in crypto assets have further improved the market sentiment," said Edul Patel, co-founder and CEO of Mudrex, a crypto exchange.
Bitcoin, now trading around $123,600, has entered “price-discovery” territory. "The breakout has pushed BTC into price discovery, with liquidation clusters forming near $125,500. If the momentum continues, we could see BTC heading towards $140,000 in the coming weeks," he said.
The milestone marks an important shift in market dynamics, experts said. "Bitcoin surged past $124,000 for the first time, setting a new all-time high before easing to $123,868. The rally was fuelled by strong institutional demand and growing expectations of a September interest rate cut, with CME FedWatch now showing a 93.7 percent probability," said Himanshu Maradiya, founder & chairman, CIFDAQ, an enterprise blockchain company.
Macroeconomic data has also helped bolster sentiment. "Softer-than-expected US CPI data at 2.7 percent YoY boosted optimism, though a core inflation uptick to 3.1 percent could keep the Fed cautious," Maradiya added.
Ethereum has also joined the rally, climbing close to its 2021 peak, trading at $4,717. Institutional inflows remain a major driver. Bitcoin ETFs alone have added over $3.6 billion in the past month, while corporate and sovereign treasuries now hold 3.64 million BTC, or about 17 percent of the total supply.
Maradiya expects some consolidation in the short term. "The markets may experience consolidation between $120K and $125K, but strong structural demand and limited supply will support further gains through the end of the year," he said.
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