Bitcoin (BTC-USD) surpassed $123,000 on Wednesday, climbing to a fresh record as institutional adoption and expectations of looser monetary policy drove the world’s largest token to new heights.
The cryptocurrency has gained 31% year-to-date and is up 60% from April’s market lows.
Inflows into spot exchange-traded funds, along with purchases from public companies copying the blueprint of software firm-turned-bitcoin juggernaut Strategy (MSTR) by adding bitcoin to their balance sheets, have been key drivers of this year’s token rally.
Strategists also point to the Trump administration’s pro-crypto stance as a major catalyst.
“The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market,” Tom Essaye, founder of Sevens Report Research, told Yahoo Finance earlier this week.
“So is it short-term a little frothy? Sure,” he added. “But longer term, there are some fundamental changes here that I think are bullish for it and we’ll send it much higher in the future.”
Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets, a move that could significantly expand retail access to crypto.
The price surge also comes as US equities have notched all-time records on expectations the Federal Reserve will cut interest rates in September, and that Trump’s next Fed chair pick will likely favor looser monetary policy.
Meanwhile ethereum (ETH-USD) prices rose to near record levels on Wednesday as Wall Street grows increasingly bullish on the world’s second-largest cryptocurrency by market cap.
Ethereum’s native token, ether jumped as much as 6% to hover above $4,700 per token, just shy of its 2021 record highs.
Companies have been adding ether to their balance sheets as a way to gain exposure to the tech infrastructure behind decentralized finance and digital assets, such as stablecoins.
This week Bitmine Immersion Technologies (BMNR), an ethereum treasury company, announced plans to sell up to another $20 billion worth of stock to boost its holdings of the cryptocurrency.
“We have stated multiple times we believe Ethereum is the biggest macro trade over the next 10-15 years,” Fundstrat head of research Tom Lee, who also serves as chairman of Bitmine, wrote in a note Wednesday.
Lee noted the majority of Wall Street crypto projects and stablecoins, or digital tokens backed by assets like the US dollar, are being built on the ethereum infrastructure.
Ether, the native token of ethereum, is up more than 50% since the GENIUS Act legislation, which creates guardrails for the stablecoin industry, was passed last month.
Additionally, the Securities and Exchange Commission’s recent “Project Crypto” announcement, an initiative to modernize the agency and establish clear regulations around the digital asset industry, has also fueled the rally in ethereum.
Fundstrat sees ETH hitting prices moving as high as $15,000 by year-end.
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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