Bitcoin surged to a new all-time high in early trading, extending a week-long rally that has lifted the broader cryptocurrency market
Bitcoin soared to a fresh all-time high above $124,000 (£91,000) during early Thursday trading, continuing a week-long surge that has boosted the wider cryptocurrency market.
Being first of its kind, Bitcoin acts according to free-market theory and was invented in 2008. Since then, the cryptocurrency is now predicted to hold 800,000 individual owners, according to Yahoo! Finance.
The price of BTC- USD reducing to around $121,700, following the rally, the world’s largest cryptocurrency has now climbed more than 6% over the past week, smashing through its previous July record of just over $120,000.
Will K, VOOI CEO and Symbiosis Finance co-founder, said: “Bitcoin’s latest rally reflects the blurring lines between crypto and traditional assets, happening faster than institutional adoption timelines predicted.
“While ETFs brought institutions into bitcoin, retail traders are returning to evolved decentralised platforms that have shed their clunky origins.”
In comparison, Yahoo! Finance reports coin Ethereum (ETH-USD) outperformed Bitcoin in percentage terms, leaping 28% over the past seven days to trade above $4,742, edging nearer to its November 2021 peak of $4,865.
Bitfinex’ Head of Derivatives, Jag Kooner, stated: “Ethereum’s rally is being driven by strong ETF [(exchange traded fund)] inflows, institutional accumulation, and a favourable macro backdrop after softer CPI [(consumer price index)] data boosted rate-cut expectations.”
He went on, saying: “Traders have rotated back into risk, with Bitcoin and Ether both seeing renewed long positioning, while options data shows low implied volatility and a build-up in open interest.”
He explained how this signalled to markets expectations of “a sharp move ahead – but hedging downside risk”.
The total cryptocurrency market value now stands at $4.23 trillion, with up 1.9% on Thursday August 7, according to CoinMarketCap data.
This crypto rally coincides with US equities closing higher on Wednesday 13, with the S&P 500 (^GSPC) and Nasdaq (^IXIC) reaching new record highs this week. This broader risk-on sentiment has spilled over into digital assets.
Bitcoin’s surge has been bolstered by a more welcoming regulatory environment in Washington. Earlier this month, US president Donald Trump signed an executive order instructing federal banking regulators to eliminate “reputational risk” as a factor in supervision, a designation that had often led banks to sever ties with lawful crypto firms.
This move, part of a wider rollback of restrictions critics labelled “Operation Choke Point 2.0,” has been paired with the disbanding of the Justice Department’s National Crypto Enforcement Team and new legislation to establish a federal framework for stablecoins.
Industry leaders have stated that this shift is paving the way for greater institutional participation in digital assets, adding momentum to bitcoin’s rally.
Note that at the time of writing this article, the cryptocurrency valued at $119,703.12, according to CoinMarketCap.