Bitcoin Smashes $124K as Miner Sell Pressure Fades and Rate Cut Bets Soar

Bitcoin has surged into record territory, breaching $124,000 for the first time and notching an impressive 8% gain over the past week. The rally comes as a decisive shift in market dynamics clears the path for further upside.

For days, bullish momentum in perpetual futures had been building — but miners initially threatened to cap the move. Between August 2 and August 10, miner reserves climbed from 1,806,790 BTC to 1,808,488 BTC, signaling potential sell pressure that could flood the market. However, as Bitcoin’s price began pressing higher, those reserves dropped sharply to 1,806,630 BTC and have since stabilized. This retreat in miner holdings removed a major overhead supply risk, giving buyers a clear runway to push prices further without fear of large-scale miner liquidations.

The surge is also riding on a wave of macroeconomic optimism. Traders are increasingly betting on a U.S. interest rate cut in September, with the CME FedWatch Tool now showing a 93.7% probability. The catalyst was cooler-than-expected July inflation data, with headline CPI rising 2.7% year-over-year and core CPI — excluding food and energy — coming in at 3.1%, just above forecasts.

Still, the Federal Reserve’s path isn’t set in stone. Chair Jerome Powell has stressed that 12-month inflation remains the key measure, and the uptick in core prices could temper dovish sentiment. In the meantime, however, crypto markets are basking in optimism. Ethereum has also edged closer to its all-time high from 2021, gaining 2.3% to reach $4,717.

If the current trend holds, Bitcoin’s new peak may not be the ceiling — but just the next step in an even bigger breakout.