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Bitcoin reached a new all-time high of $124,126 on Thursday, breaking above its previous record set in July as the world's largest cryptocurrency continues its march toward mainstream acceptance.
The milestone pushed Bitcoin's market capitalization to $2.4 trillion, making it the fifth-largest asset globally by market value and surpassing Google's parent company Alphabet.
The cryptocurrency has since pulled back to around $121,700 as of publication time.
The rally has been fueled by strong institutional demand through exchange-traded funds, with Bitcoin ETFs attracting $1.89 billion in inflows since Friday. Ethereum ETFs have also gained momentum, recording their first $1 billion daily inflow on Monday and continuing with $523.9 million on Tuesday and $729.1 million on Wednesday, according to data from Farside.
Market data shows bullish sentiment remains strong, with Taker Buy Volume reaching $12.24 billion. Mining sell pressure has also eased, with miner reserves dropping from 1.8 million BTC to 1.806 million BTC in recent days.
The Federal Reserve's monetary policy outlook continues to support risk assets, with markets pricing in a 93.9% probability of an interest rate cut in September, according to the CME's Fed Watch tool. Lower rates typically benefit Bitcoin and other cryptocurrencies by reducing the opportunity cost of holding non-yielding assets.
Bitcoin's surge past $124,000 represents a significant psychological milestone as the cryptocurrency trades at levels that seemed unimaginable just years ago. The cryptocurrency's performance has outpaced traditional assets this year, with institutional adoption through ETFs providing a regulated pathway for investment that has attracted billions in new capital.
