Bitcoin Blasts to New High on Rate Cut Optimism, Treasury Adoption
Bitcoin reached a record high on Thursday, supported by rising anticipation of a September interest rate cut
Quick overview
- Bitcoin reached a record high of $124,436.08 before closing at $123,164, driven by corporate purchases and expectations of a September interest rate cut.
- Ether also advanced, nearing its 2021 record high amid the positive market sentiment.
- The surge in Bitcoin's price is attributed to increased corporate adoption of the Bitcoin treasury strategy and weak U.S. inflation data.
- Markets are anticipating a 97 percent chance of a 25-basis-point rate cut in September, which could further boost cryptocurrency prices.
Live BTC Chart
Bitcoin reached a record high on Thursday, supported by rising anticipation of a September interest rate cut and hopes for additional corporate purchases. Ether also advanced on Thursday and was close to a 2021 record high.
This week, multiple corporate purchases further boosted the cryptocurrency as more businesses adopted the Bitcoin treasury strategy popularized by Michael Saylor’s MicroStrategy. After reaching a record high of $124,436.08, Bitcoin pared its gains and finished the day up 3.2% at $123,164.
The world’s largest cryptocurrency has surged due to increased corporate purchases and weak U.S. inflation data, which raised the likelihood of a rate cut in September. According to CME Fedwatch, markets are pricing in a nearly 97 percent chance of a 25-basis-point cut in September.
Lower rates could boost cryptocurrency prices by increasing liquidity for speculative assets, thereby enhancing their value. Recently, there has been a surge in corporate Bitcoin purchases.
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