Bitcoin surged to a record level in early Thursday trading, powered by mounting hopes that the U.S. Federal Reserve will begin cutting interest rates and growing enthusiasm around pro-crypto policies in Washington. The world’s most valuable digital asset advanced 0.9% to $124,002.49 in Asian markets, surpassing its previous peak from July.
The latest rally in crypto markets comes amid renewed speculation that the Fed will loosen monetary policy, as well as a series of regulatory wins for the industry in recent months. Since the start of 2025, Bitcoin has surged almost 32%, fueled in part by President Donald Trump’s re-election and his administration’s vocal support for digital assets. Trump, who describes himself as the “crypto president,” has taken several steps to bolster the sector, while family members have ramped up their involvement in crypto ventures.
Investor sentiment has also been buoyed by Bullish Inc, a digital asset exchange backed by billionaire Peter Thiel, which made a high-profile debut on the New York Stock Exchange this week. Shares of Bullish soared nearly 90% on opening day, assigning the company a valuation north of $10 billion.
Data from the US Labor Department showed consumer prices rising 2.7% in July from a year earlier, slightly undercutting forecasts of a 2.8% gain compiled by Reuters. The softer inflation reading has reinforced bets that the Fed could move to lower interest rates as soon as September, with the CME FedWatch Tool indicating a 94% probability of a rate cut.
