Bitcoin rose 0.9% to $124,002.49 in Singapore at 8:38 a.m. Thursday, surpassing its previous peak in July .
Slowing inflation, growing expectations for rate cuts, and attracting large investors through ETFs have created favorable conditions for the crypto market.
Bitcoin rose 0.9% to $124,002.49 in Singapore at 8:38 a.m. Thursday, surpassing its previous peak in July .
Slowing inflation, growing expectations for rate cuts, and attracting large investors through ETFs have created favorable conditions for the crypto market.
Bitcoin hit an all-time high on Thursday, boosted by expectations of easing monetary policy from the US Federal Reserve and recently announced financial reforms, Reuters reports .
Last week, the US issued an executive order allowing crypto assets to be included in 401(k) retirement accounts, indicating that the regulatory environment in the country is becoming increasingly favorable.
Bitcoin has been steadily rising for much of last year, driven by a favorable regulatory climate in Washington, D.C., brought in by President Donald Trump. It is up nearly 32% since the start of 2025.
Demand for Bitcoin has also increased as public companies, influenced by Michael Saylor’s strategy, increasingly adopt the tactic of hoarding the original cryptocurrency. This approach has recently been adopted by smaller competitors such as Ether, leading to an overall increase in the price of digital assets.
Bitcoin's market capitalization has grown to about $2.5 trillion, and Ether's to nearly $575 billion, with both tokens accounting for about 70% of all cryptocurrency trading, according to CoinGecko data, Bloomberg writes .
This coordinated move demonstrates that both speculative and mainstream markets are now fueled by the same optimism. US inflation data released this week matched expectations, bolstering investor confidence that the Federal Reserve will cut rates as early as September. This will ease financial conditions, prompting investors to shift capital from safe stocks to riskier digital tokens.
“There is a positive correlation between cryptocurrencies and stocks, and it is stronger for ETH than for BTC,” says Chris Newhouse, director of research at Ergonia. “The overall sentiment in the market is positive.”
Ether’s growth is driven by continued demand from investment firms, while Bitcoin’s growth is more stable, supported by continued capital inflows through ETFs, despite technical resistance.
“The combination of subdued inflation, rising expectations for rate cuts, and unprecedented institutional investor interest in ETFs has created a powerful tailwind,” said Ben Kurland, CEO of crypto research platform DYOR. “This time, the growth is more consistent, as demand is coming not from retail investors but from big players: asset managers, corporations, and sovereign wealth funds.”
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