Bitcoin (BTC) hit a new high on Wednesday, surging alongside U.S. equities as investors rushed into risk assets ahead of significant macro events.
In early Asian trading on Thursday, BTC exceeded $124,000, surpassing the previous peak of $123,205 set on July 14, before experiencing some profit-taking. The uptick was synchronized with the S&P 500 achieving its second consecutive record close, indicating that BTC mirrored the stock rally as both markets benefited from a positive macro environment.
Data reveals that it has now become the fifth-largest asset by market capitalization globally, surpassing Google’s $2.4 trillion valuation.
This milestone showcases a year-long surge in positive sentiment, driven by more favorable regulations under President Donald Trump and the growing trend of companies adopting bitcoin as part of their treasury strategies.
Michael Saylor’s Strategy (MSTR) led the way in accumulating BTC as a balance sheet asset, a move that has been emulated by smaller public firms and increasingly by supporters of Ether.
This trend has contributed to a strong performance across leading digital assets, with bitcoin’s market capitalization reaching $2.46 trillion and Ether’s nearing $575 billion, as per CoinGecko. Together, these two cryptocurrencies dominate about 70% of the total crypto trading volume.
The current rally is also buoyed by positive macroeconomic indicators. U.S. inflation data for the week met expectations, reinforcing the belief that the Federal Reserve might implement interest rate cuts in September.
Lower interest rates typically boost the valuations of riskier assets by easing financial conditions, leading to a spill-over effect from established equities into high-volatility sectors such as crypto.
Having broken the $120,000 resistance level, some technical analysts are now targeting the $135,000–$138,000 range as the next upside objective, according to a recent CoinDesk report.
