Bitcoin Breaks $124K: Fed Rate Cut Bets Outweigh Inflation Concerns

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Bitcoin set a fresh record above $124,000 yesterday, climbing 3.64% amid heightened speculation of a September rate cut.

The rally follows July’s CPI report, which showed headline inflation cooling to 2.7% YoY—though core CPI rose to 3.1%, slightly above forecasts.

According to Presto Research’s Min Jung, the market now prices a 93.7% probability of easing, driving BTC’s surge.

However, Fed Chair Jerome Powell’s focus on 12-month inflation leaves room for caution. “BTC will remain reactive to Fed signals,” Jung noted, as prices dipped slightly to $123,868 after the peak.