Bitcoin Nears $123K, Ethereum Eyes 2021 High

Bitcoin Nears New Record, Ethereum Approaches 2021 Peak

Bitcoin (BTC) surged to $121,662.45, moving closer to the $123,000 mark — its highest level in four weeks during Wednesday’s U.S. session.
Previously, BTC made two attempts to break records: reaching $122,300 on Monday and surpassing $123,000 on July 14, but both were met with heavy selling pressure, pushing the price back below $120,000 intraday.

Ethereum (ETH) also gained momentum, trading around $4,750, just 3% away from its 2021 all-time high of $4,865. Over the past 24 hours, ETH rose 4.5%, outperforming BTC’s 2.3% gain.

Altcoins Rally Across the Board

 - Solana (SOL) climbed 5%, breaking above $200.

 - Uniswap (UNI) and Hyperliquid (HYPE) both gained 5%-6%.

The rally has spread across the altcoin market, signaling strong bullish sentiment among investors.

Supportive Macro Environment

According to Joel Kruger, market strategist at LMAX Group, U.S. equities — with the S&P 500 and Nasdaq near record highs — are being buoyed by cooling inflation signals and expectations that the Federal Reserve will ease policy.

A report from 10x Research noted that tightening credit spreads and rising loan growth are creating favorable conditions for a sustained rally. While the Fed has yet to cut interest rates, investors expect that once it does, capital will rotate quickly into higher-risk assets.

Monetary Policy Outlook

Markets are currently pricing in a 90%+ probability of a 25 basis point rate cut at the September meeting, with growing pressure on the Fed to consider deeper easing.

The report concluded: “Bitcoin and equities have reacted early, but the market still hasn’t fully priced in what’s coming.”