Key Insights
- Bitcoin climbed above $122,000 recently over the weekend, which is less than 1% from its previous all-time high.
- The rally came right 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 within touching distance of its previous all-time high of $123,000. The move comes directly after weeks of consolidation between $115,000 and $120,000, and the general direction of the market appears to now favour the bulls.
According to TradingView data, 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 and the crypto industry as a whole.
While this was happening, ETF issuers bought $773 million worth of Bitcoin in just the last three trading days of last week, according to Farside Investors. 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. The Crypto Fear & Greed Index, for example, 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 of things, Bitcoin’s rise was matched by strong gains in Ethereum. ETH climbed to $4,315, which is its highest level since the previous bull run, and 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 alongside, with Bitmine Immersion Technologies jumping 25% while SharpLink Gaming gained 11%.
U.S. Debt Expansion Adds to Bullish Case
According to Markus Thielen, CEO of 10x Research, the ongoing expansion of US debt is another factor behind Bitcoin’s strength lately. 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 major resistance level is at $133,000, and reinforced the idea that the bulls seem to be in control of things.
Crypto Market Hits Record Valuation
The combined rise in Bitcoin and Ethereum prices have pushed the total crypto market cap to a new all-time high of $4.14 trillion, before a reversal to $3.99 trillion, according to CoinMarketCap. Bitcoin now sits just 3% below its record, while Ethereum is currently 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 more than 3% each.
What’s Next for Bitcoin?
Analysts are very optimistic about Bitcoin, and generally believe that a break above its previous all-time high is on its way. If Bitcoin does break through the $123,000 price level, traders will be watching 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 very powerful boost.
The sentiment is still in favour of the bulls, and a new all-time high could be on its way soon.
