Last night, Bitcoin reached a new milestone: the price surged to an impressive $124,000, surpassing its previous record of $123,000. Some reports even noted intraday peaks as high as $124,496. With this surge, Bitcoin has overtaken tech giant Amazon in market capitalization — marking a historic moment for the crypto world.

Why has Bitcoin risen so much?

A combination of factors has driven this sharp increase:

Interest rate expectations: As U.S. inflation came in lower than expected and the labor market showed signs of cooling, investors are increasingly confident that the Federal Reserve will cut interest rates in September — with the CME FedWatch Tool putting the odds at a very high ~93–94%.

Institutional inflow & ETFs: Both institutional investors and spot Bitcoin ETFs contributed to the rally, with billions of dollars in new capital entering the market.

Regulatory support and retirement power: New legislation in the United States has made it possible to include crypto in 401(k) retirement plans, allowing Americans to invest in crypto through their pensions. Major retirement providers have responded by adding crypto funds to their offerings. This sends a strong signal that crypto is increasingly viewed as a long-term investment.

Positive market sentiment: Globally, interest in risk assets is rising, supported by a strong performance in traditional markets like the S&P 500, and major ETF providers such as BlackRock and Fidelity are further integrating crypto into their portfolios.

Ethereum also on the rise

Not only Bitcoin, but Ethereum has also shown an impressive climb. ETH hovered around $4,700 — just about 3% below its all-time high from November 2021. Institutional interest in Ethereum is also notable: spot ETFs recorded more than $1 billion in inflows in a single day, with large-scale investments coming from firms like BlackRock and Fidelity.

What‘s next for Bitcoin?

Analysts are optimistic behind the scenes. Tony Sycamore suggests that Bitcoin could be heading toward $150,000 if it holds solidly above $125,000. Research firm Presto Research also sees momentum continuing, citing strong ETF inflows and institutional confidence as the foundation for a further rally into the end of the year — possibly with a consolidation range between $120,000 and $125,000.

Conclusion

Bitcoin‘s new all-time high is the result of interest rate expectations, institutional adoption, and favorable regulation. Ethereum is keeping pace and is once again nearing its previous record levels. In the coming weeks, analysts will be watching closely to see whether Bitcoin can hold above $125,000 and whether inflows from ETFs and retirement funds continue. One thing is clear: crypto is back in motion.

Disclaimer: This is not financial advice. Always do your own research and seek professional guidance.