Bitcoin has spent the past month consolidating below $120,000 after briefly setting a new all-time high above $123,000 in mid-July. Now, market signals suggest a potential breakout may be close.
According to Capriole Investments founder Charles Edwards, institutional transactions accounted for 75% of Bitcoin trading volume on Coinbase this week — a level he says has historically been followed by price increases within days.
Elevated outflows from the US-based exchange come as traders position ahead of potential monetary policy shifts.
Rate Cut Expectations Boost Market Sentiment
July’s US inflation data came in exactly as expected, reinforcing the belief that the Federal Reserve will begin cutting interest rates as early as next month.
Edwards noted that lower borrowing costs typically fuel demand for risk assets, with Bitcoin often reacting more strongly than traditional markets.
CME’s FedWatch Tool now shows a near-100% probability of a 25-basis-point cut in September, while markets are also pricing in multiple reductions before year-end.
Edwards added that some traders are even betting on a larger 0.5% cut due to weak employment figures — a scenario that could accelerate Bitcoin’s next leg higher.
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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.
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