Bitcoin breaks record of $124,000.

(Dan Tri Newspaper) - Bitcoin not only broke its previous all-time high but also gained momentum from expectations of Fed policy easing and a series of unprecedented supportive legal moves from the government.

The global financial market witnessed a historic milestone in the early hours of August 14th (Vietnam time). Bitcoin (BTC), the world's largest cryptocurrency, officially broke all previous records, reaching $124,002.49. This new peak surpassed the previous record of $123,205.12 set on July 14th, establishing a new chapter for "digital gold".

The hype isn't just focused on Bitcoin. Ether (ETH), the second-largest cryptocurrency, is also surging, reaching $4,780.04, its highest price since late 2021. This simultaneous surge has pushed the total market capitalization of cryptocurrencies past $4.18 trillion, a huge figure compared to the $2.5 trillion it was at the time of Trump's election in November 2024.

Notably, the surge in cryptocurrencies coincided with the boom in the US stock market, with the S&P 500 repeatedly closing at record highs. This alignment suggests a widespread optimism and risk-taking sentiment, as smart money flows unhesitatingly from traditional blue-chip stocks to volatile digital assets.

The world's largest cryptocurrency by market capitalization rose by as much as 0.9% in early Asian trading, reaching $124,002.49, surpassing its all-time high set in July (Photo: Reuters).

Decoding the "double hit": Politics and macroeconomics

Behind these impressive numbers lies a combination of two decisive factors, creating a perfect launching pad for bitcoin and the cryptocurrency market.

Since returning to the White House, President Donald Trump has kept his promise to call himself "the president of cryptocurrency." A series of favorable legal actions have been enacted, removing barriers and creating an unprecedented environment for the industry in the United States.

Stablecoin Regulation Act: The passage of a clear legal framework for USD-pegged stablecoins has increased confidence and legitimacy for a crucial part of the ecosystem.

SEC reforms: The U.S. Securities and Exchange Commission (SEC) has taken steps to reform regulations to better suit, rather than confront, this new asset class.

A groundbreaking move for 401(k) retirement funds: Most notably, the executive order signed last week paves the way for the inclusion of digital assets in 401(k) retirement accounts. This is a revolutionary change, potentially opening up a massive and sustainable channel for capital inflow into the market. Fund management giants like BlackRock and Fidelity, which operate cryptocurrency ETFs, will be major beneficiaries.

However, experts also warn about the risks of including a highly volatile asset like cryptocurrency in long-term retirement savings portfolios, which prioritize the stability of stocks and bonds.

The second factor stems from monetary policy. US inflation data released this week matched forecasts, strongly reinforcing the belief that the Fed will cut interest rates at its September meeting.

Lower interest rates reduce the attractiveness of safe-haven assets like bonds, while encouraging investors to seek out assets with higher potential returns, albeit riskier ones, such as stocks and cryptocurrencies. Essentially, when the cost of borrowing decreases, money tends to flow more strongly into the speculative "corners" of the market.

"Cryptocurrencies are showing a positive correlation with stocks," said Chris Newhouse, research director at Ergonia. "Overall sentiment is quite positive."

The maturation of demand: More than just a retail frenzy.

The core difference between this price surge and previous cycles lies in the nature of the money flow. While previous booms were primarily driven by the euphoria of individual investors (retail FOMO), this time, the foundation of demand has become much more solid and "mature."

Ben Kurland, CEO of cryptocurrency research platform DYOR, analyzed: "The combination of cooling inflation, expectations of lower interest rates, and unprecedented institutional participation through ETFs has created a strong impetus."

The difference this time is that the basis of demand has matured – it's not just the exuberance of individual investors, but also structured buying from asset managers, corporations, and even sovereign wealth funds."

The strategy of hoarding bitcoin as a reserve asset in corporate treasuries, pioneered by Michael Saylor's MicroStrategy, is gaining popularity. The persistent and continuous demand from spot bitcoin ETFs is the clearest evidence of this institutional capital flow.

Having successfully broken through its previous peak, the big question now is where will Bitcoin go next? From a technical perspective, analysts are very optimistic.

"If Bitcoin holds above $125,000, it could surge straight to $150,000," said IG market analyst Tony Sycamore.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-xo-do-ky-luc-124000-usd-20250814081703054.htm