Cryptocurrency has been rebounding over 120,000, following a short-lived decline at the beginning of this month, and it is within reach of its all-time high. The most recent action follows the rally during the evening, which also drove Ether above 4,000 for the first time since the end of 2024, and hit its steepest levels since the close of 2021. The power on both coins comes after a powerful rally in equities, as United States stocks also trade at all-time highs.
The sale of crypto to investors has also been high, even though there were expectations that there would be a slowdown in August, as generally it’s a weaker month trading-wise. Asian market-hours purchase is one factor fueling this boom and is attributed to escalating U.S. debt since July, when Bitcoin broke out on the signing of the Big Beautiful Bill, which increased the U.S. debt ceiling by $5 trillion. It is argued that the resulting growth of debts stimulates demand in hard assets such as bitcoin or gold used as a barrier against the loss of value of traditional currencies.
The next significant resistance point is Bitcoin at the price of 133,000, and this market momentum has caused people to claim that this is not out of the question. The liquidity generated by debt may continue to support prices even if the economy slows or enters into a period of recession. Ethereum is also experiencing a rush of interest, with greater inflows into ETFs linked to it than those related to Bitcoin last week. This has assisted it in shattering a psychologically challenging barrier which has limited its value in the past.
They have also seen stocks related to the crypto market rally strongly, with Coinbase, mining companies, and blockchain companies all posting gains. Whereas Bitcoin slumped merely 3% short of its all-time high. However, Ether remains 14% below its 2021 peak, and there is still the potential to capitalize on it if momentum does not calm down.
