Bitcoin hit an all-time high of $124,000 on Thursday, briefly touching $124,400 before easing slightly to $123,868. Ethereum also climbed sharply, trading near $4,717, its highest level since 2021.
The rally reflects a combination of strong institutional demand, favourable macroeconomic conditions and growing expectations of easier U.S. monetary policy.
Himanshu Maradiya, Founder and Chairman of CIFDAQ, explained the factors driving the surge.
“Bitcoin surged past $124,000 for the first time, setting a new all-time high before easing to $123,868. The rally was fueled by strong institutional demand and growing expectations of a September interest rate cut, with CME FedWatch now showing a 93.7 per cent probability. Softer-than-expected U.S. CPI data at 2.7 pc year-on-year boosted optimism, though a core inflation uptick to 3.1 pc could keep the Fed cautious,” he said.
“Ethereum also climbed near its 2021 peak, trading at $4,717. Institutional inflows remain a key driver. BTC ETFs added over $3.6 billion in the past month, while corporate and sovereign treasuries now hold 3.64 million BTC, or 17 pc of supply,” he noted.
“The markets may experience consolidation between $120K and $125K, but strong structural demand and limited supply will support further gains through the end of the year.”
Edul Patel, Co-founder and CEO of Mudrex, added further context on the broader market impact.
“Bitcoin hit a fresh all-time high of $124,400, taking the overall crypto market cap to a record $4.18 trillion. Multiple factors, such as strong optimism for a September rate cut, corporate accumulation, consistent ETF inflows and bullish derivatives activity, have contributed to the rally,” Patel said.
“Moves by the Trump administration to ease investment in crypto assets have further improved market sentiment. Currently trading at $123,600, the breakout has pushed BTC into price discovery, with liquidation clusters forming near $125,500. If the momentum continues, we could see BTC heading towards $140,000 in the coming weeks,” he added.
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The rally has been underpinned by expectations of a September interest rate cut from the Federal Reserve. CME FedWatch currently shows a 93.7 pc probability of a cut, while softer-than-expected U.S. CPI data at 2.7 pc year-on-year has boosted market optimism.
However, a rise in core inflation to 3.1 pc could make the Fed more cautious, adding an element of uncertainty to near-term movements.
Institutional adoption remains a key driver. Bitcoin ETFs have seen over $3.6 billion in inflows in the past month, and corporate and sovereign treasuries now hold 17 pc of total BTC supply.
This structural demand, combined with limited supply, has created a solid foundation for further gains, even if markets consolidate between $120,000 and $125,000 in the short term.
Analysts say that regulatory clarity and increasing institutional participation are helping cryptocurrencies mature as an asset class, paving the way for continued growth in 2025 and beyond.
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