Bitcoin broke through $124,000 to set a new historical high, Ether surpassed $4,700, and Trump's policies along with interest rate cut expectations ignited a bull run in the crypto market.

Bitcoin (BTC) strongly broke through the $124,000 mark on Thursday morning, setting a new historical record, while Ether (ETH) also surged past $4,700. This crypto market bull run coincides with the continuous new highs in the US stock market, reflecting an increase in global market risk appetite. The pro-crypto policies of the Trump administration, corporations continuously buying Bitcoin as a reserve asset, the ongoing inflow of funds into Bitcoin spot ETFs, and the rising expectations of a Fed rate cut in September collectively constitute the core driving forces behind this round of breakthroughs in the crypto market. Analysts point out that this surge is led by institutional funds, marking a more mature development stage for crypto assets.

Bitcoin breaks through strongly, hitting new highs in sync with US stocks On Wednesday evening during the New York trading session, the price of Bitcoin surpassed $123,500, exceeding the previous high of $123,205.12 set on July 14, marking a historical record. On Thursday at 8:38 AM Singapore time, the trading price of Bitcoin reached $124,000. This milestone breakthrough closely followed the S&P 500 index setting a closing record for the second consecutive trading day, highlighting the increasing correlation between cryptocurrencies and traditional risk assets.

Trump's policies and corporate hoarding drive the crypto bull run In the past year, supported by the friendly legislative environment promoted by President Trump, the price of Bitcoin has continued to rise. The strategy of publicly listed companies, led by Michael Saylor's MicroStrategy, to continuously purchase Bitcoin as a corporate reserve asset has become increasingly popular, significantly boosting market demand. This strategy has recently spread to competing coins such as Ethereum, driving a broad rise in digital assets. According to CMC data, Bitcoin's market capitalization has risen to approximately $2.5 trillion, while Ethereum's market capitalization is close to $575 billion, together accounting for about 70% of the total trading volume in the crypto market.

Interest rate cut expectations ignite risk appetite, institutions become the main force in the bull run This collaborative pump highlights that the speculative market sector and mainstream benchmark indices are drawing the same optimistic sentiment. This week's expected U.S. inflation data has strengthened the market's bet that the Fed will cut interest rates in September, and the expectation of a loose financial environment is encouraging funds to flow from blue-chip stocks to more volatile digital assets. "Cryptocurrency shows a positive correlation with the stock market, and Ethereum (ETH) has a stronger correlation with the stock market than Bitcoin (BTC)," said Chris Newhouse, the research director at Ergonia. "Overall market sentiment is optimistic." The CEO of the crypto research platform DYOR, Ben Kurland, pointed out: "The combination of easing inflation, rising expectations for interest rate cuts, and unprecedented institutional participation in ETFs has created a strong tailwind. The difference in this bull run is the maturation of the demand base - it's not just the frenzy of retail investors, but also structural buying from asset management firms, corporations, and sovereign wealth funds."

Corporate balance sheet configuration and ETF inflows are key Bitcoin (BTC-USD) has risen 31% this year, rebounding 60% from the market low in April. The continuous inflow of funds into Bitcoin spot exchange-traded funds (ETFs) and the buying behavior of publicly traded companies following MicroStrategy (MSTR) to include Bitcoin on their balance sheets are the core drivers of Bitcoin's rise this year. Tom Essaye, founder of Sevens Report Research, emphasized: "The Trump administration is strongly promoting encryption, especially Bitcoin. Bitcoin is the leader of the crypto market."

Policies are frequently favorable, institutions are optimistic about the long-term prospects Last week, President Trump signed an executive order directing the Department of Labor to explore the possibility of allowing 401(k) retirement plans to hold cryptocurrencies and other alternative assets. This move could significantly expand retail investors' access to crypto assets. At the same time, the market expects that the next Federal Reserve chairman nominated by Trump may lean towards a more accommodative monetary policy, combined with the expectation of a rate cut in September, which jointly supported the synchronized rise of US stocks and the crypto market.

Ethereum is rising strongly, institutions are betting on DeFi infrastructure At the same time, the price of Ethereum (ETH-USD) also approached its historical high on Wednesday, with Wall Street increasingly optimistic about the second-largest crypto market by market capitalization. The native token of Ethereum, Ether, surged 6% at one point, breaking through $4700 per coin, nearing the historical peak set in 2021. Companies are incorporating Ether into their balance sheets to gain exposure to the underlying technological infrastructure that supports digital assets such as decentralized finance (DeFi) and stablecoins. Bitmine Immersion Technologies (BMNR), a corporate treasury management firm focused on Ethereum, announced this week plans to sell up to $20 billion in stock to increase its holdings of Ether. "We have repeatedly emphasized that we believe Ethereum is the biggest macro trading opportunity in the next 10-15 years," wrote Tom Lee, the global advisor and research head of Fundstrat, who also serves as the chairman of Bitmine, in a report on Wednesday. He pointed out that most cryptocurrency projects and stablecoins (digital tokens backed by assets such as the dollar) on Wall Street are built on Ethereum infrastructure.

Regulatory clarity boosts Ethereum ecosystem development Since the passage of the "GENIUS Act" last month, which aims to establish regulatory safeguards for the stablecoin industry, the price of Ether has risen over 50%. In addition, the recent announcement by the Securities and Exchange Commission (SEC) of the "Project Crypto" plan—a move aimed at modernizing institutions and establishing a clear regulatory framework for the digital asset industry—has also boosted the rise of Ethereum. Fundstrat predicts that the price of Ether (ETH) is expected to reach $15,000 by the end of the year.

Conclusion: The historic breakthrough of Bitcoin and the strong surge of Ethereum mark the entry of the crypto market into a new round of strong bull run cycles, driven by the massive influx of institutional funds, marginal improvements in the regulatory environment, and the resonance of global easing expectations. The policy support from the Trump administration, the deepening trend of corporate balance sheets allocating crypto assets, and the traditional funding channels brought by Bitcoin Spot ETF are fundamentally changing the market structure. As the Fed's policy turning point approaches and more crypto-friendly policies are implemented, the wave of institutional-led crypto asset allocation is expected to continue deepening, creating broader pump potential for core crypto assets like Bitcoin and Ethereum. Investors need to closely monitor macroeconomic data, regulatory dynamics, and the flow of institutional funds to seize the rhythm of this bull run.