Bitcoin Climbs Over $122,000 Again, Ether At 4-Year Highs: What’s Driving The Crypto Rally?
Synopsis
Spot Ether inflows surged to $461 million last week, even topping Bitcoin ETF inflows of $253 million.
Bitcoin prices surged past the crucial $122,000 mark in early trading on Monday, coming within striking distance of its record high hit last month, as investors piled into the most valued cryptocurrency.
Ether, the second biggest digital asset in terms of market capitalization, also hit above $4,300, its highest level since 2021.
“Bitcoin’s climb toward record highs is being supported by steady institutional inflows into corporate treasuries, U.S. spot ETFs, and a shift in sentiment following new U.S. tariffs on imported gold bars,” said Rachael Lucas, a crypto analyst at BTC Markets, according to a Bloomberg News report.
Separately, crypto investors were also optimistic about U.S. President Donald Trump’s executive order last week, which asked the Labor Department to work toward allowing cryptocurrency, private equity, and other alternative assets in 401(k) retirement plans.
Retail sentiment on Stocktwits about Bitcoin was in the ‘neutral’ territory at the time of writing.
Spot Ether inflows surged to $461 million last week, even topping Bitcoin ETF inflows of $253 million, according to a report by the crypto-focused news publication The Block.
Investors will also closely watch several key U.S. data points, which could indicate the U.S. Federal Reserve’s potential path for benchmark interest rates.
“With CPI and PPI releases on deck this week, investors should remain cautious, as macro developments — especially those affecting future rate decisions — could sway the market," Presto Research Analyst Min Jung told The Block.
According to CME Group’s FedWatch tool, 88.4% traders are pricing in a 25-basis-point rate cut during the U.S. central bank’s next meeting in September. However, any spike in inflation or strong jobs data could lead the Fed to take a more hawkish stance.
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