Mumbai, Aug 14 (IANS) Leading cryptocurrency Bitcoin hit a record high of $124,210 on Thursday over increasing expectations for more lenient monetary policy from the US Federal Reserve.
The development, coupled with supportive financial reforms, particularly under the pro-crypto stance of the US President Donald Trump’s administration, boosted investor sentiment.
The world’s largest crypto asset by market capitalisation climbed over 0.9 per cent to $124,210, surpassing its previous peak in July. But as of 10.30 am, the BTC has dropped to $1,23,036.80. The second-largest crypto-token Ether also hit $4,780.04, the highest level since late 2021.
Markets are increasingly confident that the Federal Reserve will implement interest rate cuts, potentially starting as early as September 2025. This optimism stems from recent data that showed US inflation rose only 2.7 per cent in July YoY, below the expected 2.8 per cent, which strengthens the case for lower interest rates.
Sustained institutional buying and moves by the Trump administration to ease investment in crypto assets, add to the tail winds. The passage of stablecoin regulations and the US Securities and Exchange Commission’s (SEC) overhaul of regulations to accommodate digital assets have bolstered investor confidence.
Analysts said that a sustained break above $125k could propel BTC to $150,000. Bitcoin has risen nearly 32 per cent YTD following Trump’s return to the White House, who has branded himself “crypto president.”
An executive order last week paved the way to allow crypto assets in 401(k) retirement accounts, highlighting an increasingly favorable regulatory environment in the United States.
According to data from CoinMarketCap, the crypto sector’s overall market capitalisation has skyrocketed to over $4.18 trillion since Trump’s election, up from about $2.5 trillion in November 2024.
The rally extended beyond Bitcoin, with several cryptocurrencies such as Solana, XRP, and Dogecoin seeing significant gains, fuelled by speculation of capital rotation from Bitcoin to altcoins.
–IANS
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