Bitcoin hits record $124,000, boosted by rising demand from investors and retirement accounts.
Analysts credit Trump’s crypto support and expected Federal Reserve rate cut for the surge.
Bitcoin surged to a new all-time high of $124,000 on Thursday, August 14, driven by increasing demand from U.S. retirement accounts, institutional investors, and corporate treasuries. The rally coincided with gains in U.S. equities, reflecting stronger global risk appetite.
Bitcoin gained 0.9% from its July peak, while Ethereum climbed to $4,700, its highest since late 2021. Bitcoin has since eased slightly to around $121,500 after breaking firmly above the $120,000 threshold, following a strong climb from $116,000.
Analysts attribute the bullish momentum to President Donald Trump’s pro-crypto stance, growing certainty of a Federal Reserve rate cut in September, and continued inflows into cryptocurrency exchange-traded funds. Bitcoin’s market capitalization now stands at about $2.5 trillion, while Ethereum’s is close to $575 billion, with both assets making up roughly 70% of the global crypto market.
A recent executive order by Trump allows 401(k) retirement accounts to invest directly in cryptocurrencies potentially unlocking a multi-trillion-dollar source of capital. Even small allocations from these accounts could significantly boost prices. Steady payroll contributions, combined with buying from large custodians and asset managers, are adding consistent upward pressure.
Since taking office, Trump has championed cryptocurrency adoption, pushing through stablecoin regulations and securities reforms to integrate digital assets into the mainstream financial system. The favorable policy climate, along with a supportive macroeconomic backdrop, has propelled Bitcoin’s value up nearly 32% in 2025.
Market watchers say a sustained move above $125,000 could set the stage for Bitcoin to target $150,000, strengthening its role as a key asset in both institutional and retail portfolios.
