Bitcoin surpasses $124K milestone amid market rally

Bitcoin hit a fresh record high on Wednesday, moving in tandem with a rally in U.S. stocks as investors embraced greater risk in global markets.

The cryptocurrency climbed above $123,500 in New York on Wednesday evening, surpassing its previous peak of $123,205.12 set on July 14. The milestone came after the S&P 500 closed at a record for the second consecutive session, extending a run that has repeatedly pushed the index to new highs.

Bitcoin has risen steadily for much of the past year, supported by a favorable regulatory environment in Washington shaped by U.S. President Donald Trump. Public companies, led by Michael Saylor’s MicroStrategy, have boosted demand by adopting the increasingly popular strategy of holding the cryptocurrency on their balance sheets. This approach has recently spread to smaller rivals such as Ether, fueling a broad rally across digital assets.

Rate-cut bets boost optimism

The synchronized surge highlights how speculative corners of the market and major indexes are drawing momentum from the same source of optimism.

U.S. inflation data this week came in line with expectations, reinforcing bets that the Federal Reserve will cut interest rates in September — easing financial conditions and encouraging capital to flow from large-cap equities into volatile digital currencies.

Additional support for crypto prices

Ether has gained on persistent demand from newly active corporate treasuries, while Bitcoin’s steadier rise has been fueled by ongoing inflows into exchange-traded funds, despite facing technical resistance.