Bitcoin Tops $122K, Eyes Fresh Record, With Ether Just 3% From 2021 ATH

The current macro backdrop has rarely been more favorable for risk assets, and the market hasn’t fully priced in what’s coming, a report said.

• Bitcoin was closing in on a fresh record high during U.S. afternoon trading hours.
• Ether was also climbing and just 3% from its late 2021 peak.

Bitcoin has mounted another attempt for a fresh all-time record climbing near $123,000, a four-week high during the Wednesday U.S. session.

Two previous attempts, spiking to $122,300 on Monday and topping $123,000 on July 14, were met with heavy selling, knocking down prices intraday below $120,000 on both occasions.

Ethereum’s ether (ETH) was also inching closer to its 2021 peak of $4,865, trading at $4,750 and just 3% shy from that record. Ether continued its recent outperformance, ahead 4.5% over the past 24 hours against 2.3% for BTC.

Broader capital markets are providing “supportive momentum” with the S&P 500 and Nasdaq hovering near all-time highs, “buoyed by the softer inflation signals and speculation of Fed easing,” said Joel Kruger, market strategist at LMAX Group.

With credit spreads tightening and loan growth picking up, conditions are forming for a sustained rebound. The Federal Reserve has been reluctant to cut interest rates, but investors will quickly shift funds to high-beta risk assets if the central bank adjusts its policy. Market participants currently expect a greater than 90% chance of a 25 basis point rate cut at the Fed’s September meeting, but policymakers are facing increasing pressure to consider further easing.