Bitcoin broke to a fresh all-time high of $124,210 on Thursday, fueled by growing hopes that the US Federal Reserve will soon embrace a more dovish monetary policy.
Prolonged optimism among investors has been fueled further by benevolent financial reforms spearheaded by US President Donald Trump, whose government has been a vociferous supporter of cryptocurrencies.
The world's most valuable cryptocurrency by market capitalization climbed more than 0.9% to reach the all-time high before falling back to $123,036.80 as of 10:30 am. Ether, the second-largest digital currency, also went up to $4,780.04 — its highest price since late 2021.
Market observers are placing greater wagers that the Fed may start reducing interest rates from as soon as September 2025. This follows July's US inflation figures, which registered a 2.7% year-over-year rise, modestly less than forecasted 2.8%, making the argument for easing policy even stronger.
Weighty institutional inflows and new regulatory frameworks promoting crypto investment have contributed to the optimism. Recent events include the approval of stablecoin regulation and the US Securities and Exchange Commission deciding to change its rules to accommodate digital assets more effectively.
Analysts predict that a break above the $125,000 level would pave the way for Bitcoin to rise towards $150,000. The cryptocurrency has already registered a near 32% return year-to-date so far on the strength of what Trump has referred to as his being the "crypto president."
Recently, an executive order sanctioned the addition of crypto assets to 401(k) retirement schemes, marking a notably supportive trend for digital assets within the US.
Statistics by CoinMarketCap indicate that the overall market capitalisation of the cryptocurrency market has risen to more than $4.18 trillion following Trump's election in November 2024 from approximately $2.5 trillion.
The bubble has spilled over to the wider market, with currencies such as Solana, XRP, and Dogecoin recording sharp increases on speculation that money may roll out of Bitcoin and into other cryptocurrencies.
