After about 3 weeks of mostly staying below USD 120,000, Bitcoin (BTC) began to surpass this resistance level yesterday and successfully conquered its previous peak this morning. At around 7:30 Hanoi time, the world's largest cryptocurrency set a new record of over USD 124,457 per unit, an increase of over 3% in the past 24 hours. This level is about 1.1% higher than the previous peak in mid-July.
The world's second-largest cryptocurrency, Ether (ETH), is also inching closer to its 2021 peak. This morning, it traded at nearly USD 4,785, just 1.65% shy of its previous record (USD 4,865). Ether's daily accumulation is outpacing BTC with 4.5%.
The upward trend of cryptocurrencies has extended to major altcoins. Solana (SOL) is trading over 5% higher than the same period in the previous session, with Uniswap (UNI) and Hyperliquid (HYPE) also up 5-6%.
The generally positive performance of the capital market is providing "support momentum" for cryptocurrencies. Investors are excited as the two US stock indices, the S&P 500 and Nasdaq, set new records for the second consecutive session.
Joel Kruger, a market strategist at LMAX Group, said the results were "driven by weaker inflation signals and speculation about the US Federal Reserve (Fed) easing monetary policy." US inflation in July rose slower than expected, solidifying the possibility of a Fed rate cut. This also provided relief to investors as President Donald Trump's import taxes have not caused prices to accelerate significantly.
In a recent report, market research firm 10x Research stated that the current macroeconomic environment is a rare opportunity that favors risky assets. As interest rates decrease and loan growth increases, conditions for a sustained recovery are emerging.
The report noted that when the central bank pivots, investors will quickly shift capital to higher-risk (beta) assets. According to CME's FedWatch Tool, investors are currently forecasting a nearly 100% probability of a 25 basis point (0.25%) Fed rate cut in the September meeting. The last time the Fed adjusted monetary policy was 12/2024.
"Bitcoin and stocks are both reacting early, but the market has yet to fully price in what's coming," the 10x Research analysis team said.
Since the beginning of the year, Bitcoin has increased by nearly 32% thanks to long-sought regulatory victories for the sector following Trump's return to the White House. He has called himself the "crypto president," and his family has made a series of inroads into the sector over the past year.
Technically, IG Group market analyst Tony Sycamore said if there is a sustained breakout above USD 125,000, BTC could be pushed to USD 150,000 per coin.
Tieu Gu (according to CoinDesk, Reuters)
