Bitcoin continues to show positive momentum, achieving a record high of $123,231 on Coinbase. Alongside the rise of cryptocurrency, a record was also noted in the S&P 500 index.
Record Growth of Bitcoin
After Bitcoin surpassed the $123,231 mark, the cryptocurrency market responded significantly to this growth. Since the beginning of the week, Bitcoin has notably gained, with its market capitalization exceeding $2.45 trillion.
Economic Factors and Market Impact
The price increase of Bitcoin coincided with the release of the US Consumer Price Index (CPI) report, which for July revealed stable inflation at 2.7%, below the expected 2.8%. In light of this report, the CME FedWatch tool indicates a 93.9% likelihood of a Federal Reserve interest rate cut at the upcoming September meeting, providing further optimism for the cryptocurrency market.
Strong ETF Flows and Short Position Liquidation
In recent days, there has been a significant increase in flows into Bitcoin and Ethereum ETFs. According to data from Farside Investors, net inflows into the BTC ETF totaled $65.9 million, and $523.9 million for the Ethereum ETF. This past Tuesday marked the first time the Ethereum ETF attracted over $1 billion, signaling growing investor confidence. CoinGlass analysis revealed that a break through the $122,800 to $125,500 price range could liquidate nearly $2 billion in short positions.
The total cryptocurrency market capitalization has reached an all-time high of $4.15 trillion, indicating the strong positions of Bitcoin and other altcoins amid positive market sentiment.
