Bitcoin price surged to a record high today, July 11, sparking a major crypto market rally that pushed the total market cap to a record high of over $3.62 trillion. Some of the top altcoin gainers were Hedera Hashgraph (HBAR), Stellar Lumens (XLM), Dogecoin (DOGE), and Pepe (PEPE).
Bitcoin Price Jumps as Fed Official Calls for Rate Cuts
The first major reason for the surge in Bitcoin and other altcoins was the ongoing division at the Federal Reserve. In a statement on Thursday, Christopher Waller, a top Fed official, suggested that the bank should cut interest rates this month.
His argument is that Donald Trump’s tariffs have not led to a jump in inflation in the United States. Indeed, recent economic data showed that the headline Consumer Price Index (CPI) remained at 2.3%, slightly above the Fed’s target of 2.0%.
Better still is the fact that inflation expectations have plunged, while the import price index has continued to fall, even with the tariffs included.
Still, the odds of a Fed interest rate cut remain low, as only Waller and Michele Bowman have supported it. Other Fed officials believe that they should wait and see before cutting rates. Donald Trump has called on the bank to cut its interest rate by 300 basis points.
READ MORE: Crypto Bull Run is Here: Best Altcoins to Buy Below $1
ETF Inflows Surge, Supply Crashes
The Bitcoin price also surged as data showed that ETF inflows continued to soar, a sign that Wall Street investors are buying. ETF inflows surpassed the $50 billion mark, and this trend is expected to continue in the coming months.
At the same time, the number of Bitcoin treasury companies has surged in the past few days, reaching 61 as of today. This includes companies like Strategy, MARA Holdings, and Metaplanet.
This demand is surging at a time when Bitcoin supply is “running out”. Data shows that the supply in exchanges has plummeted to below 1.2 million, a big drop from the year-to-date high of $1.5 million.
A combination of falling supply and rising demand will always result in higher asset prices over time.
READ MORE: Bitcoin Price Analysis: Chart Shows Why BTC Will Explode as Supply Crashes
Bitcoin Price Technicals Are Strong
Furthermore, as we have written before, the Bitcoin price has formed several bullish patterns, which explains why the surge has occurred. It formed a bullish flag pattern, which comprises a vertical line and a horizontal channel.
Bitcoin also formed an inverse head-and-shoulders pattern and a cup-and-handle. These patterns point to an eventual surge to $150,000 in this bullish cycle. A strong Bitcoin price surge will also lead to more gains among altcoins like DOGE, HBAR, XLM, and Pepe.
