NEW YORK – Bitcoin surged to a new all-time high early on Thursday, as the world’s leading cryptocurrency gained momentum from growing expectations of a Federal Reserve interest rate cut and a recent wave of corporate investment.
The price of Bitcoin rose 3% to hit a record peak of $123,588.4, surpassing the previous high set in mid-July. The rally extends a strong upward trend that began last week, underpinned by two key factors.
Firstly, recent mild U.S. inflation data has significantly increased market bets that the Federal Reserve will move to cut interest rates in September, a scenario that typically boosts investor appetite for higher-risk assets like cryptocurrencies.
Secondly, the digital asset has been buoyed by increased corporate buying. More companies are reportedly adopting a treasury strategy of holding Bitcoin on their balance sheets, a practice popularized by Michael Saylor’s MicroStrategy Incorporated (NASDAQ:MSTR).
Overall sentiment in the cryptocurrency market was also lifted this week by the stellar public debut of Bullish Inc. (NYSE:BLSH). The Peter Thiel-backed crypto exchange saw its shares jump nearly 90% from their initial public offering price, achieving a market valuation of over $10 billion and signaling strong investor confidence in the digital asset sector.
The positive momentum was not limited to Bitcoin. Ether, the world’s second-largest cryptocurrency, also saw significant gains, rising 3.8% to trade at $4,783.10. The price brought Ether to within striking distance of its own record high of $4,868.8, set in November 2021. Like Bitcoin, Ether has also reportedly benefited from increased corporate buying in recent weeks.
