"Bitcoin Reaches All-Time High, Ethereum Soars...Concerns About Short-Term Corrections"

Amid renewed momentum in the virtual asset market, driven by expectations of a US interest rate cut and large-scale institutional buying, there are also warnings from some that a short-term correction could occur soon.

On the 14th, cryptocurrency derivatives exchange BitMEX stated on its blog, "With the US July inflation rate coming in lower than expected, expectations for a rate cut in September have grown," and analyzed, "As risk appetite increased, Bitcoin surpassed $124,000 on the day."

It further added, "Ethereum has surged 59% in a month, surpassing $4,750 and coming within just 3% of its all-time high of $4,868 recorded in November 2021. Its market capitalization also crossed $570 billion."

The recent rally was also fueled by the US passing the stablecoin bill last month. The bill permits the use of US dollar-based stablecoins for international settlements, sparking increased demand for Circle, the issuer of USDC, and the Ethereum Network.

However, there are also suggestions that Bitcoin may enter a technical correction phase in the short term. Quoting Blockchain.com data, BitMEX said, "Bitcoin network hashrate declined from 965 million TH/s on the 7th to 892 million TH/s on August 13," and analyzed, "Given the traditional correlation between price and hashrate, this suggests a possible correction."