Bitcoin reached a new all-time high of $124,347 yesterday before stabilizing at $123,868, driven by growing expectations of an interest rate cut by the Federal Reserve in September, according to Bloomberg.
Analysts attribute this rise to cooling inflation data in the United States, and the CME FedWatch Tool now shows a 93.7% chance of easing.
Subscribe to our Telegram channel to get weekly short digests about events that shape the crypto world
Min Jung, an analyst at Presto Research, said:
"Bitcoin's price will likely remain highly sensitive to any developments — positive or negative — related to the September rate decision."
While the overall CPI slowed to 2.7% year-on-year, core inflation rose to 3.1%, leaving some uncertainty.