Bitcoin reached a record high, coinciding with a surge in American stocks as investors in global markets took on more risk.
The world’s largest cryptocurrency by market valuation surpassed its July peak, rising up to 0.9 percent to $124K early Thursday.
Ethereum, the second-largest crypto asset by market valuation, struck $4.7K, its highest level since late 2021.
Bitcoin is currently trading around $121.5k after a strong impulsive breakout from $116K, which marked the start of its upward move.
This suggests strong demand and the potential for further gains as it has surpassed its previous all-time high.
Momentum confirmed: Bitcoin maintained its momentum after breaking above $120K, fueled by the 401(k) as a catalyst for additional growth.
Bitcoin has been on a bullish run because of a favorable legislative environment created by President Donald Trump in Washington.
BTC market value increased to approximately $2.5 trillion, while Ether spiked to almost $575 billion.
According to CoinGecko, both tokens now account for roughly 70% of all cryptocurrency market valuation
The coordinated action highlights that mainstream benchmarks and speculative market corners are using the same source of optimism. As anticipated, this week’s US inflation data reinforced expectations that the Federal Reserve will lower interest rates in September, improving financial conditions and attracting capital from blue-chip stocks to volatile digital tokens.
The steady demand from recently active treasury firms has driven Ether’s rise, while Bitcoin’s more gradual ascent has relied on ongoing exchange-traded inflows despite technical resistance. Bitcoin’s rally is being powered by increasing certainty of Fed rate cuts, sustained institutional buying, and moves by the Trump administration to ease investment in crypto assets.
The President Trump administration’s initiatives to facilitate investment in cryptocurrency assets, the growing certainty of Fed rate cuts, and ongoing institutional buying are driving the surge in bitcoin. In theory, a persistent surge above $125,000 could push Bitcoin to $150K.
The pioneer crypto asset increased by almost 32% so far in 2025 amid the long-awaited regulatory victories for the industry after President Donald Trump took office again.
President Trump has referred to himself as the “crypto president,” and during the past year, his family has made several business ventures in the field. The U.S. has seen several regulatory victories for cryptocurrency, including the adoption of stablecoin laws and the overhaul of regulations by securities regulators to make room for the asset class.
The rise of Bitcoin has also spurred a huge rally in the asset class over the past few months despite the tremors of Trump’s expansive tariff policies. An executive order issued last Thursday would facilitate access to the asset class in 401(k) retirement accounts, spearheading the recent push for cryptocurrency adoption in the world’s largest economy.
There are trillions of dollars in managed retirement savings in the United States 401(k) market. Bitcoin could receive a significant boost from even a modest investment.
There are trillions of dollars in managed retirement savings in the United States 401(k) market. Bitcoin could receive a significant boost from even a modest investment.
Contributed Systematically: Regardless of market volatility, monthly payroll contributions result in steady purchasing pressure.
Institutionally Managed: The need to directly source Bitcoin will increase regulated demand for the crypto among larger custodians and asset managers.
This action solidifies its position as a respectable asset class in popular US retirement portfolios for Bitcoin in particular, which is a significant turning point that may produce market stability and credibility.
The adoption-driven price thesis, which Citi highlighted, is also supported by this data: price is becoming more dependent on who is purchasing and how frequently, rather than just supply metrics.