Bitcoin soared to a record $124,000 on Thursday, August 14, driven by surging demand from U.S. retirement accounts, institutional investors, and corporate treasuries. The milestone came alongside a rally in U.S. equities, underscoring a broader rise in global risk appetite.
The world’s largest cryptocurrency by market value climbed 0.9% from its July peak, while Ethereum reached $4,700 — its highest since late 2021. Bitcoin is now hovering near $121,500 after powering past the $120K barrier, extending a rally that began at $116K.
Analysts say the breakout reflects strong momentum fueled by President Donald Trump’s pro-crypto policies, growing confidence in a Federal Reserve rate cut this September, and sustained inflows into Bitcoin exchange-traded funds. Bitcoin’s market capitalization now stands at roughly $2.5 trillion, while Ethereum’s approaches $575 billion. Together, they account for about 70% of the entire crypto market.
A recent executive order from Trump has opened the door for 401(k) retirement plans to invest directly in cryptocurrencies — a potential multi-trillion-dollar capital source. Even a small allocation from these funds could inject substantial buying power into the market.
Institutional and treasury purchases have added to the momentum, with regular payroll contributions into retirement accounts creating steady demand. Major custodians and asset managers are now sourcing more Bitcoin directly, further cementing its role as a mainstream investment asset.
Trump, who brands himself the “crypto president,” has rolled out sweeping regulatory reforms — from stablecoin legislation to securities rules tailored for digital assets. Combined with favorable macroeconomic conditions, these changes have helped propel Bitcoin nearly 32% higher in 2025.
Market watchers suggest that if Bitcoin holds above $125,000, it could be poised to reach $150,000, solidifying its status as a cornerstone for both institutional and retail portfolios.
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