Bitcoin hit a record high Wednesday, moving in lockstep with a rally in US equities as investors pushed deeper into risk-taking territory across world markets. The crypto currency rose to $1,24,514 today, marking a fresh record high according to Bloomberg data. The previous high of $123,205.12 was hit on on July 14.
This came after S&P 500 closed with record gains for the second straight day. The benchmark S&P 500 and the Nasdaq had hit record highs backed by gains in megacap companies as investors were increasingly confident that the US Federal Reserve could restart its monetary policy easing cycle next month.
The Dow Jones Industrial Average last rose 379.32 points, or 0.86%, to 44,839.44, the S&P 500 gained 28.17 points, or 0.44%, to 6,474.20 and the Nasdaq Composite gained 84.32 points, or 0.39%, to 21,766.23.
Bitcoin had been rising for most of the past year given the boosted the demand. Bitcoin's market cap rose to around $2.5 trillion and Ether's to nearly $575 billion, with both tokens holding about 70% of all crypto traded, according to Bloomberg. This also comes after the US inflation data was in line with expectations, paired with the bets of a an interest rate cut from the Federal Reserve in September.
"The crypto market extended its bullish momentum as cooler-than-expected US CPI data boosted rate-cut expectations to 94%. Bitcoin briefly tested the $120,250 mark before consolidating near $119,500, while Ethereum outperformed, surging above $4,600 for the first time since 2021," according to Edul Patel, co-founder and chief executive officer of Mudrex.
He added that strong ETF inflows added to the rally, with ETH ETFs recording the largest daily inflow of over $1 billion. He expert also said that the decisive daily close above $120,000 could trigger its next leg of the rally, adding strength to the bullish structure.
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