Bitcoin hits new all-time high as Ethereum nears record

Bitcoin climbs to a new price peak while Ethereum closes in on its own historic high amid rate-cut expectations and a risk-on mood.

Bitcoin Hits All-Time High as Ethereum Nears Record

Bitcoin surged to a fresh price milestone on Wednesday, topping $122,882 and surpassing its July record of $122,838, according to CoinGecko data. The move follows a broad market rally as traders bet on eventual rate cuts from the Federal Reserve and a more accommodating macro environment for risk assets. Stocks moved higher, with the S&P 500 and Nasdaq reaching new highs and the Dow hovering near its own record, signaling renewed investor appetite for equities alongside crypto.

Over a seven-day span, Bitcoin gained about 6%, and it has risen roughly 30% year to date after opening 2025 around $94,384. The momentum has partly been driven by a belief that looser monetary policy will sustain liquidity and support speculative assets. The asset class has long traded with a higher risk tolerance, often aligning with tech equities, in lower interest rate environments. In the political realm, comments from a crypto-friendly administration have spotlighted calls for rate cuts, injecting a layer of policy debate into market dynamics. The Federal Reserve maintains independence, though policy chatter remains a constant backdrop.

Ethereum rose in tandem with Bitcoin, trading near $4,728 and just 3% below its November 2021 peak of $4,878. The broader crypto market has shown breadth beyond Bitcoin, as investors look for newer catalysts to sustain gains even as momentum remains uneven across tokens.

The rally highlights how crypto markets are increasingly tied to macro liquidity and policy expectations. When rate-cut prospects gain traction, traders tend to price in higher risk tolerance, lifting coins that were once seen as niche. Yet political dialogue around the Fed adds a new source of volatility because public pressure can complicate stable, predictable policymaking. For investors, the lesson is clear: momentum can carry prices higher, but it also can reverse quickly if policy signals shift. Long-term holders should watch liquidity conditions and regulatory signals as key risk factors.

Highlights

Markets will be tested by policy clarity and liquidity shifts in the weeks ahead.