Bitcoin's recent surge to a record high of $123,600 is driven by expectations of a Federal Reserve rate cut and favorable economic data.
Fed Rate Cut Fuels Liquidity Hopes
A potential Fed rate cut is seen as a green light for increased liquidity in the market, significantly benefiting both Bitcoin and altcoins. Bitcoin's market cap has now surpassed that of Google and Amazon, making it the sixth-largest asset in the world. This achievement has also boosted institutional portfolios, with MicroStrategy’s Bitcoin holdings reaching a record $77.2 billion and El Salvador's national BTC stash showing unrealized profits exceeding $468 million.
Whale Moves Signal Confidence
Amid this bullish sentiment, analysts flagged a significant withdrawal of 5,400 BTC (worth $656 million) from Kraken, likely heading for cold storage. While some suggested it could be a portfolio reshuffle, analysts believe it indicates strong institutional accumulation. Large withdrawals to private wallets often reflect long-term conviction and reduced selling pressure, which can help sustain price rallies.
Miner Reserves Drop, Easing Sell Pressure
One key factor supporting Bitcoin's rally has been the recent drop in miner reserves. Earlier this month, reserves rose from 1,806,790 BTC to 1,808,488 BTC, raising fears of increased selling from miners. However, as Bitcoin began breaking out, reserves fell to 1,806,630 BTC and have remained steady since. This decline means less immediate selling risk, removing a significant barrier for bulls looking to push prices higher.
In the current landscape, a blend of liquidity from a Fed rate cut coupled with rising ETF inflows and stablecoin adoption could drive Bitcoin deeper into price discovery, potentially igniting a long-awaited altcoin season.
