Bitcoin (COIN:BTCUSD) surged to an all-time high on Thursday, fueled by growing expectations for a Federal Reserve rate cut in September and renewed enthusiasm from corporate investors.
Ether (COIN:ETHUSD), the world’s second-largest cryptocurrency, also climbed sharply, closing in on its 2021 record. Corporate interest has been a major driver, as more companies follow the Bitcoin treasury approach popularized by Michael Saylor’s MicroStrategy.
Bitcoin reached an unprecedented $124,436.80 before easing slightly, trading up 3.2% at $123,164.10 by 00:47 ET.
Rate Cut Optimism Supports Crypto Rally
The crypto rally has accelerated since last week, supported by both rising corporate purchases and softer-than-expected U.S. inflation data, which strengthened bets on a September rate reduction. According to CME FedWatch, markets were pricing in nearly a 97% likelihood of a 25 basis-point cut.
Lower interest rates generally boost speculative assets like cryptocurrencies by increasing available liquidity for investors.
Corporate adoption of Bitcoin has added fuel to the rally. Metaplanet Inc (USOTC:MTPLF), the world’s sixth-largest corporate Bitcoin holder, revealed a purchase exceeding $60 million this week and is raising billions to expand its crypto holdings.
Earlier in August, MicroStrategy also disclosed a significant Bitcoin acquisition, bringing its total reserves to 628,946 coins. Investor sentiment received an additional boost from Bullish Inc (NYSE:BLSH), a crypto exchange backed by Peter Thiel, which debuted on the NYSE with shares jumping nearly 90% from its IPO price, giving the company a market value of over $10 billion.
Altcoins Gain Momentum as Ether Approaches Record
Other major cryptocurrencies also saw strong gains on Thursday. Ether rose nearly 4% to $4,786.54, just shy of its $4,868.80 record from November 2021, fueled by corporate buying trends similar to those for Bitcoin. Standard Chartered even raised its 2025 Ether price target from $4,000 to $7,500 amid this adoption.
Third-largest crypto XRP climbed 2.6% to $3.3038, while Solana and Cardano surged 6.5% and 19.5%, respectively. Cardano benefited further from Grayscale Investments advancing plans for a spot Cardano exchange-traded fund.
Memecoins also rallied, with Dogecoin up 6.8% and $TRUMP gaining 7.1%. Overall, the crypto market has been buoyed by increased risk appetite and expanding corporate interest, keeping investors optimistic about the weeks ahead.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply