Stocks and crypto roar as Fed cut bets mount: Bitcoin hits record, Ether ETFs boom

Stocks and crypto roar as Fed cut bets mount: Bitcoin hits record, Ether ETFs boom

U.S. stocks notched fresh records while crypto surged to new highs, as traders broadly priced in a Federal Reserve rate cut next month following cooler inflation data. Bitcoin pierced a new all-time high above $123,000, Ether drew the second-biggest daily inflows on record into U.S. spot ETFs, and Solana briefly topped $200, underscoring risk-on sentiment across markets.

Markets snapshot

- U.S. equities: The Dow jumped more than 450 points as the S&P 500 and Nasdaq scored back-to-back record closes, with traders fully pricing a September Fed cut and rising odds of a 50 bps “jumbo” move.  

- Global equities: The MSCI All Country World Index hit a record for a second straight session, buoyed by Wall Street’s rally and rate-cut expectations.  

- Bitcoin (BTC): BTC set another all-time high around $123,000–$124,000 as cooling U.S. CPI data reinforced bets on imminent easing.  

- Ether (ETH): U.S. spot Ether ETFs recorded $729.1 million in net inflows on Wednesday, the second-largest daily haul since launch.  

- Solana (SOL): SOL climbed past $200 intra-day amid rising on-chain activity before paring gains, with traders eyeing higher resistance zones if momentum holds.  

- Total crypto market: Market cap pushed to roughly $4.2 trillion as volumes swelled toward $240 billion over 24 hours, reflecting broad-based participation.

What’s driving the surge

Stocks rallied after the July CPI report showed inflation rising less than expected, prompting a near-unanimous market view that the Fed will cut rates in September; traders also boosted the probability of a larger 50 bps cut. The rate-hope narrative spilled over into crypto, historically sensitive to liquidity and real yields, magnifying upside across majors. Signs of easing price pressures and a softer dollar helped extend a global risk rally, with Indian equities, Europe, and Asia echoing Wall Street’s upbeat tone as the week progressed.

Crypto momentum expands beyond Bitcoin

Bitcoin’s breakout to fresh records arrived alongside a notable shift in flows toward Ether. U.S. spot ETH ETFs pulled in $729.1 million in a single day — their second-strongest session — a liquidity impulse that can translate into fund buying pressure in the underlying asset. Meanwhile, Solana’s network activity and price action strengthened, with SOL reclaiming the $200 handle before encountering resistance, as total crypto volumes surged across majors. BTC’s new all-time high followed CPI-driven easing bets, with traders targeting the $125,000 area as a pivotal zone for momentum continuation.

Beyond the mega-caps, AI-linked tokens saw outsized interest on Dutch exchange Bitvavo: Fetch.ai (FET) and SEI led with a combined near-40% share of AI token trading volume, highlighting retail-driven rotations into higher-beta narratives during risk-on bursts.

Is altseason really here?

Some market watchers argue altseason began in April and could fade as early as October, pointing to declining Bitcoin dominance and the growing number of altcoins outperforming BTC. Others counter that it’s more of an “Ethereum season” until ETH itself sets a fresh record, noting that the Altcoin Season Index remains below the 75 threshold that typically confirms a full-fledged altseason (recently around 49). Cointelegraph likewise frames 2025 as a potential altseason — but with caveats, given shifting rules of engagement around liquidity, fundamentals, and ETF-driven flows.

What to watch next

- Macro catalysts: Producer Price Index on Thursday and retail sales on Friday offer the next checkpoints for the disinflation narrative and the scale of the September Fed cut now priced by markets.  

- Crypto flows: Persistence (or reversal) of spot ETH ETF inflows, BTC funding conditions, and exchange outflows will help determine whether this leg extends or cools.  

- Breadth and rotation: Whether gains continue rotating into small caps in equities — and into high-beta altcoins in crypto — will signal how durable risk appetite is beyond the mega-cap leaders.