Bitcoin (COIN:BTCUSD) hit a new all-time high on Thursday, boosted by rising expectations for a Federal Reserve rate cut in September and increased corporate purchases.
Ether (COIN:ETHUSD), the world’s second-largest cryptocurrency, also advanced sharply, approaching its 2021 peak. The rally has been fueled by a wave of corporate investors adopting a Bitcoin treasury strategy inspired by Michael Saylor’s MicroStrategy.
Bitcoin climbed to a record $124,436.80 before settling slightly lower, trading up 3.2% at $123,164.10 by 00:47 ET.
Fed Rate Cut Prospects Drive Market Optimism
The broader crypto market has gained momentum over the past week as investors reacted to softer U.S. inflation data, boosting expectations for a September rate cut. The CME FedWatch tool showed the market assigning almost a 97% probability to a 25 basis-point reduction.
Lower interest rates make non-yielding assets like Bitcoin more appealing by freeing up investment capital for riskier assets.
Corporate demand has further strengthened the rally. Metaplanet Inc (USOTC:MTPLF), ranked sixth among corporate Bitcoin holders globally, announced a $60 million purchase this week and is raising billions for additional acquisitions.
MicroStrategy also confirmed a substantial Bitcoin purchase earlier in August, raising its total holdings to 628,946 coins. Investor sentiment received a boost from Bullish Inc (NYSE:BLSH), a Peter Thiel-backed crypto exchange, whose NYSE debut saw shares soar nearly 90% above the IPO price, valuing the company at over $10 billion.
Altcoins Rally Alongside Bitcoin
Other major cryptocurrencies also experienced notable gains. Ether rose nearly 4% to $4,786.54, approaching its November 2021 record of $4,868.80, bolstered by corporate buying activity. Standard Chartered raised its 2025 Ether price target from $4,000 to $7,500.
XRP, the third-largest cryptocurrency, climbed 2.6% to $3.3038. Solana and Cardano surged 6.5% and 19.5%, respectively, with Cardano benefiting from Grayscale Investments advancing its plans for a spot Cardano ETF.
Memecoins joined the rally, with Dogecoin up 6.8% and $TRUMP increasing 7.1%. Strong corporate participation and favorable market conditions continue to fuel optimism across the crypto landscape.
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