Bitcoin has surged to a fresh all-time high, lifted by strong institutional demand, favourable U.S. policy changes, and expectations of lower interest rates. On Thursday, the world’s largest cryptocurrency touched $124,002 in early Asian trading, surpassing its previous July peak.
In a major milestone, Bitcoin’s market capitalisation has now overtaken Google’s, making it the world’s fifth-largest asset by value. At the same time, the total cryptocurrency market cap has reached a record $4 trillion, reflecting wider bullish momentum across digital assets. Ethereum is also approaching its prior peak, trading close to $4,700.
Bitcoin Edges Towards $125K
Bitcoin hovered near $121,100 in Thursday’s session, just shy of its record $123,166. It gained 1.43% on the day, supported by a steady climb marked by higher lows and a strong technical breakout. The 100-day and 200-day moving averages have crossed to the upside, a bullish signal that supports the case for more gains. Analysts say a decisive close above $123,000 could set the stage for $125,000 in the near term, with $137,000 possible if momentum continues. Traders are also keeping an eye on $116,000 as a key support should the rally cool.
ETF Inflows and Corporate Buys
Exchange-traded funds (ETFs) have been central to this rally. In five trading days, U.S.-listed Bitcoin ETFs recorded $1 billion in net inflows, with BlackRock’s IBIT contributing the largest share. The fund now manages more than $58 billion, helping push the total Bitcoin ETF market to over $153 billion.
Institutional demand has far exceeded supply. Capriole Investments estimates buying activity this week was 600% higher than new Bitcoin mined. Corporate treasuries have also been active, adding nearly 3,000 BTC in 48 hours. Norway’s sovereign wealth fund holds more than 7,000 BTC indirectly through stakes in Bitcoin-heavy firms.
Last week’s executive order from President Donald Trump, allowing 401(k) retirement accounts to invest in crypto, could further expand this investor base. With about $9 trillion in retirement savings eligible, the policy could bring significant inflows into Bitcoin and other top-tier digital assets.
Interest Rate Outlook
Macroeconomic conditions have aligned in Bitcoin’s favour. U.S. July inflation rose 2.7% year-on-year, slightly below expectations. This has strengthened bets on a September Federal Reserve rate cut, with markets assigning a 96% probability of a 25bps drop and growing chances of a larger cut.
Lower rates tend to benefit risk assets like Bitcoin by reducing capital costs and increasing liquidity. Analysts note that this rally appears more sustainable than past cycles, driven less by speculation and more by steady institutional participation.
Market Confidence
The bullish sentiment is not limited to Bitcoin. Ethereum is nearing $4,700, close to its all-time high, while Solana trades at $201 and XRP at $3.28. The sector-wide rally has lifted the total crypto market value to $4 trillion for the first time, showing how institutional investments and regulatory clarity are reshaping the digital asset landscape.
Year-to-date, Bitcoin is up about 28%, matching gold’s performance and reinforcing its image as a modern hedge against monetary risk. While resistance at $125,000 may pose a short-term test, a strong break above could renew discussions of $137,000 or higher targets.
For now, steady ETF inflows, corporate accumulation, and supportive U.S. policies are keeping momentum firmly in Bitcoin’s corner, but traders remain cautious, mindful of key support levels and potential macro shifts.
Written By Fazal Ul Vahab C H
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