On Wednesday, August 13, Bitcoin surpassed its previous record of $123,205.12, set on July 14, trading at $124,000 in Singapore at 8:38 AM. This surge occurred shortly after the S&P 500 closed at an all-time high for the second consecutive time. This is reported by UNN with reference to Bloomberg.
Details
Bitcoin's ascent has been ongoing for over a year, driven in part by a favorable regulatory environment in the US and growing demand from large corporations actively accumulating cryptocurrency. Similar tactics are extending to other digital assets, including Ethereum, leading to a broader market rally.
According to CoinGecko, Bitcoin's market capitalization reached $2.5 trillion, and Ethereum's nearly $575 billion. Together, these two cryptocurrencies account for about 70% of the digital asset market. The growth was influenced by stable inflation data in the US and expectations that the Federal Reserve will lower its key rate as early as September, stimulating capital inflow into the crypto market.
Cryptocurrency positively correlates with stocks, with this connection being stronger for ETH than for BTC
Ethereum's growth has been fueled by sustained demand from new active treasury firms, while Bitcoin's steady rise is supported by consistent exchange inflows, even as it faces technical resistance.
The combination of moderate inflation, rising expectations for rate cuts, and unprecedented institutional participation through ETFs has created a powerful tailwind
Addition
Experts predict that if US rates are cut, Bitcoin could test the psychological mark of $130,000 by the end of August. At the same time, analysts warn that short-term corrections are possible after a rapid rise, especially if the stock market comes under pressure from macroeconomic factors.
An additional driver for the cryptocurrency market remains the active implementation of crypto payments in international trade and the growing number of countries that officially allow the use of Bitcoin as a means of payment.
Ether catches up with Bitcoin: crypto market rises to historical highs13.08.25, 16:30