Key Insights
- Bitcoin climbed above $122,000 over the weekend, less than 1% from its previous all-time high.
- The rally came after a pro-crypto White House order and strong inflows from the ETF market.
- Ether also hit $4,315, which is its highest level since 2021. This has boosted the total crypto market cap to $4.14 trillion.
Bitcoin has surged past $122,000, a rally that has now put it close to its all-time high of $123,000. The move comes directly after weeks of consolidation between $115,000 and $120,000.
The market’s general direction now favors the bulls. TradingView data said BTC rose over 3.3% early Monday and marked one of its strongest moves of the month.
ETF Inflows and Policy Boost Creating Market Buzz
Interestingly, this rally came after President Donald Trump’s recent order to allow crypto investments in 401(k) retirement plans. According to market analysts, this move can unlock up to $9 trillion in new investment opportunities for Bitcoin.
Amid this, ETF issuers bought $773 million worth of Bitcoin in just the last three trading days of last week. Farside Investors reported this. Meanwhile, Michael Saylor hinted on Sunday that Strategy, his company, may expand its massive $76.8 billion Bitcoin holdings.
Market Sentiment Remains Stable
Despite the rally, market sentiment hasn’t reached extreme levels. For example, the Crypto Fear & Greed Index currently sits at 70 out of 100, in the “Greed” zone.
However, even this level is far from historical peaks. Google search interest in Bitcoin has also seen a modest rise in the past week.
This often means that retail hype is relatively controlled, and institutional investors still hold the reins over the market. On the altcoin side, Bitcoin’s rise was matched by substantial gains in Ethereum.
ETH climbed to $4,315, its highest level since the previous bull run. It is now up nearly 200% from its April lows. Ether’s breakout above $4,000 last week triggered a fresh wave of buying interest, especially among institutions.
According to data from SoSoValue, Ethereum ETFs attracted $326.83 million in inflows last week. This amount of value beat the Bitcoin ETF inflows of $246.75 million. Stocks tied to Ethereum also rose, with Bitmine Immersion Technologies jumping 25% while SharpLink Gaming gained 11%.
U.S. Debt Expansion Adds to Bullish Case
According to Markus Thielen, 10x Research’s CEO, the ongoing expansion of US debt is another factor behind Bitcoin’s recent strength.
He compared the move to early July, when President Trump signed the “Big Beautiful Bill.” For context, this “Big Beautiful Bill” included a $5 trillion debt ceiling increase.
“Whether the economy stays strong or dips into recession, the flood of new debt is a tailwind for hard assets like Bitcoin and gold,” Thielen said to CNBC.
The analyst believes that the next significant resistance level is at $133,000. This reinforced the idea that the bulls seem to control things.
Crypto Market Hits Record Valuation
Bitcoin and Ethereum prices surged, lifting the crypto market. The total market cap hit a record high of $4.14 trillion. It later pulled back slightly to $3.99 trillion, per CoinMarketCap. Bitcoin now sits just 3% below its record, while Ethereum is 14% off its previous all-time high.
Stocks linked to the crypto industry also saw interesting gains across the mining, infrastructure, and exchange industries.
For example, Coinbase rose over 5%, Circle climbed 3%, and Galaxy Digital jumped 8%. Bitcoin miners like Mara Holdings, Riot Platforms, and Iren gained over 3% each.
What’s Next for Bitcoin?
Analysts are optimistic about Bitcoin, and a break above its previous all-time high is coming. Bitcoin may break through the $123,000 price level. If this happens, traders will watch to see if it can push toward Thielen’s $133,000 target.
For now, the combination of factors influencing the market has given Bitcoin a potent boost. The sentiment still favors the bulls, and a new all-time high could soon be coming.
