Bitcoin surged to a new all-time high of $123,231, while Ethereum crossed the $4,500 mark and Binance Coin (BNB) climbed to $830 after U.S. inflation data met expectations. The rally follows the July Consumer Price Index (CPI) report showing inflation unchanged at 2.7% year-over-year, below the forecast of 2.8%, boosting investor confidence in imminent Federal Reserve rate cuts.Macro Drivers Behind the RallyInflation Data: CPI held steady at 2.7% YoY, with a modest 0.2% MoM rise versus June’s 0.3%.Rate Cut Expectations: CME FedWatch now shows a 93.9% probability of a September rate cut, as traders anticipate the Fed easing monetary policy.ETF Inflows: Spot Bitcoin ETFs recorded $65.9M in net inflows, while Ethereum ETFs saw a record $1B daily inflow, driving liquidity across the market.Correlated Risk Rally: The S&P 500 also reached a record 6,457, reflecting a broader risk-on sentiment.Technical Outlook & Market StructureBTC Resistance Zones: Hyblock liquidation heatmaps show a large short-squeeze cluster between $122,800–$125,500, with $2B in short positions at risk of forced closure.ETH Momentum: Ethereum’s breakout past $4,500 has ignited bullish calls, with traders eyeing $5,000 as the next target.BNB Strength: BNB’s push toward $850 highlights strong altcoin rotation alongside large-cap moves.[Chart Suggestion]: Combined price-action chart with:BTC and ETH price vs. CPI release dateShort liquidation clusters (Hyblock data overlay)Exchange outflow spikes for ETH and BTCAltcoin Market ReactionGoogle Trends data shows “altcoin” search volume hitting a five-year high, suggesting retail interest is resurging. Mid-cap and AI-linked tokens are seeing double-digit gains, while Binance Futures added two new high-leverage contracts (AIOUSDT and XNYUSDT), potentially drawing speculative flows, according to Cointelegraph.Prospects & Risks AheadUpside Potential:BTC could challenge $125K–$126K if liquidation cascades continue.ETH’s ETF momentum may push it toward the $5,000–$5,500 zone in the short term.Downside Risks:Stronger-than-expected economic data could delay Fed cuts.Overleveraged positions increase the risk of sharp corrections.
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