- •Bitcoin breaks $125,700 as Fed rate cuts fuel crypto optimism.
- •BlackRock’s IBIT ETF hits $90B, boosting institutional bitcoin demand.
- •JPMorgan lifts bitcoin target to $165,000 amid dollar weakness bets.
Bitcoin surged past $125,700 shortly after midnight ET, setting a new record high and igniting excitement across the crypto market. According to TradingView data, the top cryptocurrency jumped 3% on the day, breaking its previous peak near $124,500 from August.
The rally pushed bitcoin’s weekly gain to 10%, bringing its year-to-date rise to 34%. Over the past year, bitcoin’s value has soared by 102%, underscoring growing investor confidence in digital assets.
The price breakout followed the Federal Reserve’s recent 0.25% interest rate cut, its first since December 2024. Market participants expect more easing ahead, with CME’s FedWatch tool showing a 96% chance of another 0.25% cut in October and an 86% chance for December.
ETF Growth Boosts Bitcoin’s Momentum
Institutional demand continues to strengthen bitcoin’s position in the market. BlackRock’s IBIT BTC ETF recently entered the top 20 U.S. ETFs by assets under management, crossing $90 billion for the first time.
Its rapid climb represents one of the fastest ascents ever for an ETF, highlighting growing trust in regulated bitcoin exposure.
Analysts at JPMorgan have also raised their year-end price target for bitcoin to $165,000, pointing to its potential to match gold’s performance.
They argue that investors are turning to bitcoin as a hedge against dollar weakness and inflation concerns.
Additionally, the combination of lower interest rates and strong ETF inflows has created an ideal setup for further market growth.
Bitcoin’s rally reflects increasing appetite for alternative assets as monetary conditions continue to loosen.
With renewed optimism and robust institutional participation, bitcoin’s latest surge signals shifting market sentiment.
The intersection of policy support, investor demand, and expanding ETF adoption continues to drive bitcoin’s climb to new heights.