Bitcoin surges past $124,000 to hit all-time high. What's fueling the rally?
'Bitcoin surged past $124,000 for the first time, setting a new all-time high before easing to $123,868. The rally was fueled by strong institutional demand and growing expectations of a September interest rate cut, with CME FedWatch now showing a 93.7% probability. Softer-than-expected US CPI data at 2.7% y/y boosted optimism, though a core inflation uptick to 3.1% could keep the Fed cautious,' he said.'Ethereum also climbed near its 2021 peak, trading at $4,717. Institutional inflows remain a key driver. BTC ETFs added over $3.6 billion in the past month, while corporate and sovereign treasuries now hold 3.64 million BTC, or 17% of supply,' he noted.'The markets may experience consolidation between $120K and $125K, but strong structural demand and limited supply will support further gains through the end of the year.'Edul Patel, Co-founder and CEO of Mudrex, added further context on the broader market impact: 'Bitcoin hit a fresh all-time high of $124,400, taking the overall crypto market cap to a record $4.18 trillion. Multiple factors, such as strong optimism for a September rate cut, corporate accumulation, consistent ETF inflows, and bullish derivatives activity, have contributed to the rally.""Moves by the Trump administration to ease investment in crypto assets have further improved market sentiment. Currently trading at $123,600, the breakout has pushed BTC into price discovery, with liquidation clusters forming near $125,500. If the momentum continues, we could see BTC heading towards $140,000 in the coming weeks," Patel added.Simply put, the rally has been supported by expectations of a September interest rate cut from the Federal Reserve. CME FedWatch currently shows a 93.7% probability of a cut, while softer-than-expected US CPI data at 2.7% year-on-year has boosted market optimism.However, a rise in core inflation to 3.1%, however, could make the Fed more cautious, adding an element of uncertainty to near-term market movements.It is worth noting that institutional adoption remains a key driver. Bitcoin ETFs added over $3.6 billion in inflows in the past month, and corporate and sovereign treasuries now hold 17% of total BTC supply. This structural demand, combined with limited supply, has created a strong foundation for further gains, even if markets consolidate between $120,000 and $125,000 in the short term.advertisementAnalysts say that regulatory clarity and increasing institutional participation are helping crypto mature as an asset class, paving the way for continued growth in 2025 and beyond.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- Ends
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Mint
an hour ago
- Mint
Michael Saylor Bets on a $100 Billion Bitcoin ‘Credit' Dream
(Bloomberg) -- Michael Saylor has built a career on testing how far conviction can bend markets — part financier, part preacher. Now the Strategy Inc. chairman is betting that same belief on what may be his riskiest financing experiment yet. Over the years, Saylor has urged followers to pour their savings into Bitcoin, mortgage their homes, even 'sell a kidney.' To admirers, he's a prophet with a balance sheet; to skeptics, a showman with an obsession. Either way, he's turned a once-obscure software company into the world's largest corporate holder of Bitcoin, playing the markets with a conviction most executives would never dare. Now, Saylor is asking for a different kind of leap of faith: embracing an unorthodox financing instrument — perpetual preferred stock — to shift away from common stock sales and convertible bonds that helped build a $75 billion Bitcoin war chest. The twist: these securities never mature and some can skip dividend payments, making them flexible for the issuer but unnerving for investors. Branded 'Stretch,' the latest issuance pays dividends with a variable rate and offers no voting rights. This kind of security is neither debt nor common equity, but Saylor hopes it combines advantages of both, giving him fresh cash to keep buying Bitcoin without heavily diluting shareholders. Over the next four years, he plans to retire billions in convertible notes, curtail common stock sales, and issue more preferred offerings as his main funding source. The gamble is audacious: to create, as the firm puts it, a 'BTC Credit Model,' where a volatile asset underpins a stream of income securities. If there's big demand, he speculates it could even raise '$100 billion… even $200 billion' in theory. If not, Strategy, as MicroStrategy now calls itself, could be left juggling payouts with no buyers. Selling Bitcoin is a near-taboo, given Saylor's 'hold on for dear life' gospel that coins are sacred. Supporters see the preferreds as a clever way to keep crypto buying; critics warn that the payouts are costly and could become a burden if Bitcoin's price turns. So far this year, the company has raised around $6 billion across four perpetual preferred offerings. The latest, a $2.5 billion 'Stretch' tranche, ranked among the largest crypto capital raises this year, eclipsing Circle's high-profile IPO. Nearly a quarter of the sale went to retail buyers, per a firm presentation, cementing Saylor's devoted following as a key funding source. 'I have no past knowledge of any company doing this the way that MicroStrategy has just to capitalize on the retail fervor,' said Michael Youngworth, head of global convertibles and preferred strategy at Bank of America. That retail tilt stands out in the corporate preferred market, dominated by investment-grade utilities and banks. Strategy is unrated, making its preferreds junior in the structure and outside the comfort zone of many fixed-income investors. If retail appetite fades, Saylor would need to win over insurers and pensions — the buyers he says he hopes to attract — or risk falling short of his blockbuster-fundraising ambitions. Since the start of 2024, Saylor has raised over $40 billion through a mix of stock and bonds — $27 billion from common equity sales, $13.8 billion from fixed-income securities — transforming Strategy into a Bitcoin proxy for Wall Street. Part of the pivot is practical: the convertibles market excludes retail. Strategy CEO Phong Le framed the shift as a way to build a more resilient capital structure — a contrast to 2022's 'crypto winter,' when the company was burdened by a Bitcoin-backed loan from Silvergate and other debt. 'Over time, we may not have convertible notes,' he said, 'we will be relying on perpetual preferred notes that don't ever come due.' 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It's only a matter of time before Trump blinks on tariff: Chris Wood
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Wall St. Week Ahead-Wall Street trains sights on Jackson Hole Fed gathering
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