On August 14, Bitcoin set a new price record, surpassing $124,000. The leading cryptocurrency reached $124,128 before correcting to $121,862, which is 1.6% below its fresh ATH (all-time high).
Market Cap Growth and Market Position
Following the price surge, Bitcoin’s market capitalization reached $2.4 trillion, placing it among the world’s top five largest assets and briefly overtaking Google. Ethereum also came close to its all-time high: at the current price of $4,737, it was less than $100 away from the $4,878 record set on November 10, 2021.
According to CoinGecko, the total cryptocurrency market capitalization rose by 2.9% over the past 24 hours to $4.23 trillion. Bitcoin’s dominance index stands at 57.5%, while Ethereum holds 13.5%. Indicators from CoinGlass do not yet signal market overheating.
Liquidations and Short Seller Risks
In the past 24 hours, 113,822 traders’ positions worth a total of $454 million were liquidated. Short positions totaling $2 billion remain especially vulnerable and will be closed if Bitcoin reaches $125,500.
Drivers of Growth: From the Fed to Institutional Demand
According to Presto Research analyst Min Jun, one key driver of the rally has been the high probability of a Federal Reserve interest rate cut in September. The CME FedWatch Tool currently estimates this likelihood at 93.7%. Optimism was further boosted by lower-than-expected U.S. Consumer Price Index (CPI) data: July’s figure came in at 2.7%, compared to the forecasted 2.8%. However, Jun emphasized that monetary policy easing is not guaranteed, as the Fed is focused on annual inflation rates.
BTC Markets crypto analyst Rachel Lucas pointed to the impact of institutional demand: in the past month, Bitcoin ETFs have attracted more than $3.6 billion, while corporate and government treasuries have accumulated over 3.64 million BTC—around 17% of total supply. She predicts the trend will persist until the end of the year, though consolidation between $120,000 and $125,000 is possible.
Outlook and Risks
JAN3 CEO Samson Mow expects Bitcoin to hit several new records but warns of a potential pullback after altcoins overheat. In his view, once the altcoin hype fades, Bitcoin will gain fresh momentum—a pattern seen before.
In summary, Bitcoin remains at the center of attention for both retail and institutional investors. However, its next move will largely depend on the Fed’s rate decisions, inflation trends, and activity in the altcoin market.
