Bitcoin Breaks $123,000 to Set New All-Time High

Bitcoin has surged to a fresh all-time high, beating the previous record of $123,165, which was set on July 14.

BTCs price rode the bullish momentum hitting $123,500. The rally ignited a wave of short liquidations totaling $90.79 million in just 24 hours, a jump of 180% compared to the day before. With critical resistance now sitting between $123K and $125K, traders are watching closely for the next breakout.

A large concentration of bearish positions remains between $122,800 and $125,500, according to Binance News. If Bitcoin can hold above the $122K mark, forced buybacks from these liquidations could add reflexive upward pressure, accelerating gains into uncharted price territory.

Institutional Demand Remains Strong

Institutional appetite for Bitcoin shows no signs of slowing. BlackRocks spot BTC ETF recorded $65.9 million in inflows, while corporate holdings have climbed sharply. Strategy, one of the biggest corporate buyers, now holds $77.2 billion worth of BTC — up 85% from its peak in 2024, according to Bitcoin Magazine.

This accumulation has driven exchange balances to record lows, with just 1.25% of total BTC supply available for trading. Analysts warn that this structural scarcity could amplify volatility if demand remains elevated.

Macro Tailwinds in Play

On the macroeconomic side, Julys U.S. Consumer Price Index came in at 2.7% year-over-year, matching forecasts and boosting expectations for a September interest rate cut. MarketWatch data shows traders are pricing in a 93.9% chance of a rate reduction.

While lower rates typically benefit risk assets like Bitcoin, its 90-day return of +18.56% suggests the market may have already priced in dovish policy expectations. The upcoming August 15 Producer Price Index release is now the next major macro data point to watch.

The Road Ahead

With leveraged longs entering the market and institutional inflows rising, the stage is set for a potential push toward $125K in the near term. If momentum holds and shorts continue to get squeezed, Bitcoin could see another parabolic leg higher before year-end.

Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.