Bitcoin Hits All-Time High, Igniting Crypto Market Surge

Bitcoin’s Remarkable Rise Linked to Fed Rate Cut Speculation

Bitcoin’s price skyrocketed to unprecedented levels on July 11, triggering a significant rally across the cryptocurrency market, which saw its total capitalization exceed $3.62 trillion. Notable altcoins such as Hedera Hashgraph (HBAR), Stellar Lumens (XLM), Dogecoin (DOGE), and Pepe (PEPE) experienced substantial gains during this surge.

The primary catalyst for this upward momentum was the ongoing debate within the Federal Reserve regarding interest rates. Christopher Waller, a prominent Fed official, recently advocated for a reduction in rates this month, arguing that tariffs imposed by Donald Trump have not significantly impacted inflation levels in the U.S. Current economic indicators reveal that the Consumer Price Index (CPI) stands at 2.3%, just above the Fed’s target of 2.0%.

Moreover, inflation expectations have notably decreased, and the import price index continues to decline, even with tariffs in place. However, the likelihood of an immediate rate cut remains uncertain, as Waller and Michele Bowman are the only officials supporting this move, while others prefer a cautious approach. Donald Trump has called for a drastic 300 basis point cut.

Surge in ETF Inflows and Declining Bitcoin Supply

The surge in Bitcoin’s price can also be attributed to a significant increase in ETF inflows, indicating strong interest from Wall Street investors. Recent data shows that ETF inflows have surpassed $50 billion, a trend that is expected to persist in the upcoming months.

Simultaneously, the number of companies holding Bitcoin in their treasuries has risen sharply, reaching 61, including notable firms like Strategy, MARA Holdings, and Metaplanet. This growing demand coincides with a dwindling supply of Bitcoin, which has fallen to below 1.2 million on exchanges, down from a year-to-date high of 1.5 million. The combination of increasing demand and decreasing supply typically results in higher asset prices over time.

Strong Technical Indicators for Bitcoin’s Future

Technical analysis reveals that Bitcoin has formed several bullish patterns, contributing to its recent price surge. Among these patterns are a bullish flag, characterized by a vertical line and a horizontal channel, as well as an inverse head and shoulders pattern and a cup-and-handle formation. These indicators suggest a potential price target of $150,000 in this bullish cycle. A significant rise in Bitcoin’s value is likely to drive further gains in altcoins such as DOGE, HBAR, XLM, and Pepe.

Disclaimer: This article is provided for informational purposes only and does not constitute financial advice. Readers are encouraged to conduct their own research before making any investment decisions.