Bitcoin surged to a fresh record on Wednesday, hitting $123,824 on Coinbase before easing to around $121,100 in late trade. The move puts the cryptocurrency up 1.43% over the past 24 hours and within sight of the closely watched $125,000 level.
The rally followed US inflation data showing consumer prices in July rose 2.7% from a year earlier, unchanged from June and just under the forecast 2.8%. On a monthly basis, CPI climbed 0.2%, slowing from June’s 0.3%. The softer reading pushed market expectations for a Federal Reserve interest rate cut in September to nearly 94%, according to CME FedWatch.
Bitcoin Price Chart
Source: CoinMarketCap
At the time of writing, Bitcoin was trading at $123,928; its market capitalization stood at $2.46 trillion, with 24-hour trading volume reaching $94.16 billion. The broader digital asset market is also gaining ground, with total crypto market value climbing 2.84% to $4.17 trillion.
Institutional buying remains a major driver. The U.S.-listed Bitcoin ETFs have pulled in $1 billion in net inflows over the past five days, led by BlackRock’s IBIT fund, which added $111 million on Tuesday and now manages $58.07 billion. Total Bitcoin ETF exposure has climbed above $153 billion. Ethereum ETFs have also drawn strong interest, recording a $1 billion single-day inflow on Tuesday and $523.9 million earlier this week.
Corporate activity is adding fuel to the rally. Japan’s Metaplanet purchased 518 BTC for $61.4 million at an average price of $118,519 per bitcoin. Large company wallets accumulated almost 3,000 BTC in just two days. Moreover, with this surge, Michael Saylor’s Bitcoin-focused company, Strategy, closed its holdings to an all-time high (ATH) of $77.2 billion earlier today. This is almost double its previous peak of $41.8 billion set in 2024.
The market’s momentum is clear. Bitcoin has pushed through important resistance points, with charts showing higher lows and a bullish crossover between the 100-day and 200-day moving averages. Traders say a strong close above $123,682 could pave the way toward $126,875.
With economic conditions tilting in Bitcoin’s favor, ETF inflows picking up pace, and more corporations adding BTC to their reserves, this rally is being built on solid ground. The next test for the market will be whether it can maintain momentum and push through to a clean break above $125,000.