Bitcoin soared to a record high of $124,000 early Thursday as investor confidence surged around President Donald Trump’s pro-cryptocurrency reforms and expectations of a Federal Reserve interest rate cut in September. The world’s largest cryptocurrency briefly climbed 0.9% above its July peak before settling near $121,500, following a sharp breakout from $116,000 earlier in the week, signaling strong demand and market momentum.
Ethereum, the second-largest digital asset, also rallied to $4,700, its highest level since late 2021, driven by steady institutional buying. Together, Bitcoin and Ethereum now represent roughly 70% of the entire cryptocurrency market, with Bitcoin’s market value reaching $2.5 trillion and Ether’s nearing $575 billion, according to CoinGecko.
The rally has been powered in part by President Trump, who has positioned himself as a “crypto president” through initiatives aimed at easing investment in digital assets. Key reforms include regulatory overhauls at the Securities and Exchange Commission and new laws governing stablecoins. Last week, the White House issued an executive order allowing Bitcoin and other cryptocurrencies to be included in 401(k) retirement accounts, a landmark move in the $7.5 trillion U.S. retirement market.
Investor optimism has also been bolstered by expectations of a Federal Reserve interest rate cut. Recent U.S. inflation data has reinforced the possibility of monetary easing in September, which typically encourages investment in higher-risk assets like cryptocurrencies and growth stocks. The synchronized rally in digital assets and equities reflects investors’ search for yield and growth amid a potentially looser monetary environment.
Institutional and systematic demand has remained a key driver of Bitcoin’s ascent. Inflows into crypto-focused exchange-traded funds and corporate treasury allocations, along with recurring 401(k) contributions, are providing a stable buying base. Citi analysts note that Bitcoin’s price movements are increasingly linked to adoption trends and buying patterns, rather than traditional supply-side factors, signaling that policy-driven demand is now a major force behind the cryptocurrency’s record highs.
Source: Business day