Bitcoin is showing high activity again, reaching a record price at $123,824 before slightly retracting. Let's examine what fueled this growth.
Record Bitcoin Price
On Coinbase, Bitcoin hit $123,824, marking a new record for the cryptocurrency. Currently, its price is around $121,100, reflecting a 1.43% increase over the past 24 hours.
Inflation and its Market Impact
Recent inflation data in the U.S. showed consumer prices rose 2.7% year-over-year in July, matching June's figures and just below the forecast of 2.8%. This led investors to expect a nearly 94% chance of a Federal Reserve rate cut in September.
Growing Institutional Investments
Institutional investments are playing a significant role in the current rise. In just five days, Bitcoin ETFs attracted $1 billion in net inflows. Japanese company Metaplanet purchased 518 BTC for $61.4 million at an average price of $118,519.
The rise of Bitcoin is supported by economic factors and growing interest from institutional investors. The next key milestone for the market is maintaining this momentum and pushing through the $125,000 mark.
