Bitcoin’s record-breaking charge to $124,000 on Thursday was the latest sign of crypto’s march into the financial mainstream.
Spurred by President Donald Trump’s sweeping reforms — including a landmark move to allow Bitcoin in 401(k) plans — and expectations of a Federal Reserve rate cut next month, investors pushed the world’s largest cryptocurrency beyond its summer high.
Meanwhile, Ethereum joined the charge, climbing to $4,700 — its strongest level since 2021.
Together, they now command 70% of the crypto market, with Bitcoin’s value hitting $2.5 trillion and Ether’s climbing to nearly $575 billion.
Trump’s Policy Blitz
Trump, styling himself the “crypto president”, ripped up the rulebook.
He pushed the SEC to rewrite regulations, signed laws to govern stablecoins, and — in a landmark move — authorised Americans to hold Bitcoin in 401(k) retirement accounts, opening a $7.5 trillion savings pool to digital assets.
Rate-Cut Momentum
At the same time, cooling US inflation strengthened traders’ conviction that the Fed will cut rates in September.
That prospect sent money chasing higher-risk, higher-return plays.
As a result, stocks and crypto rallied in tandem, signalling that digital assets have stepped from the fringe into the mainstream.
Institutional investors kept the momentum alive.
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They poured money into ETFs and corporate treasuries, buying with such regularity that they built a steadier base for the market.
Citi analysts now argue that adoption — not just supply quirks — drives Bitcoin’s price.
With policy changes accelerating that adoption, they expect the curve to steepen sharply.
For Bitcoin believers, this rally marks more than a record.
It signals the dawn of a policy-fuelled era.
