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#BTC Hits New ATH# Bitcoin hit a record high on its way to $125,000 amid liquidation expectations.
The price of Bitcoin (BTC) reached a new all-time high on Wednesday, exceeding $124,547.
Bitcoin's surge to new highs came a day after July's US CPI data showed annual inflation remaining at 2.7 percent. This rate was the same as in June and below the 2.8 percent forecast. The data showed the overall CPI rose 0.2 percent, compared to a 0.3 percent increase in June.
Following the report's release, the CME FedWatch tool showed that the probability of a rate cut at the Federal Reserve meeting in September had risen to 93.9 percent.
Longtime crypto investors have argued that the Fed's interest rate cuts and shift away from quantitative easing have historically benefited Bitcoin's price action. Many also predict that the economic agenda outlined by US President Donald Trump will lead to increased spending, inflation, and risk appetite in financial markets.
Inflows into Bitcoin and Ether spot ETFs have also attracted investor attention and fueled market optimism. Net inflows for the BTC ETF reached $65.9 million, while $523.9 million in ETH stocks were purchased on Tuesday.
On Tuesday, the ETH ETF saw its first $1 billion inflow, and while net inflows have slowed, the product has seen $1.02 billion in inflows since Friday. The cumulative effect of ETH's success is clearly fueling optimism in Bitcoin and altcoin prices.
Liquidation heatmap data shows Bitcoin breaking through the short liquidation cluster at $122,500, creating room for a forced position closure area of up to $124,000. The data suggests that approximately $2 billion worth of short positions are at risk of being liquidated if investors push the price above the $122,800 to $125,500 liquidation cluster.
Bitcoin's surge to new highs has pushed its market capitalization above $2.45 trillion, while the total cryptocurrency market capitalization currently stands at a record $4.15 trillion.