Bitcoin (BTC-USD) climbed sharply on Monday, nearing record highs as investor enthusiasm around cryptocurrencies intensified. The digital asset briefly hit $122,000 before settling near $120,000, driven by increased inflows into exchange-traded funds (ETFs) and growing adoption by public companies adding bitcoin to their balance sheets.
Ethereum (ETH-USD), the second-largest cryptocurrency by market cap, also gained momentum, reaching levels last seen in 2021. Since the April market lows, Ethereum has surged approximately 190%, as companies seek exposure to the underlying technology powering decentralized finance and stablecoins.
The rally coincides with stock markets hovering near record highs amid expectations of Federal Reserve interest rate cuts in September. Investors are optimistic that President Trump’s upcoming Fed chair nomination will usher in a looser monetary policy. Sean Farrell, head of digital asset strategy at Fundstrat, explained, “If the Fed cuts rates in an economy that’s still growing, with unemployment stable and inflation elevated, it creates a macro environment favorable for crypto allocation.”
Trump’s nomination of Stephen Miran to the Federal Reserve’s Board of Governors adds further bullish sentiment. Miran’s past advocacy for a weaker dollar is typically supportive of asset price appreciation, including cryptocurrencies.
Regulatory developments have also bolstered market confidence. Last week, President Trump issued an executive order directing the Labor Department to explore allowing 401(k) retirement plans to hold cryptocurrencies and other alternative assets—potentially broadening crypto’s investor base.
Even Eric Trump weighed in on the surge, urging investors to stop betting against Bitcoin and Ethereum, warning, “you will be run over.”
Industry strategists see the administration’s crypto-friendly stance as a significant catalyst. Tom Essaye, founder of Sevens Report Research, told Yahoo Finance, “The administration is pushing crypto and bitcoin is leading the pack. While the market may be frothy in the short term, fundamental shifts are underway that point to a much higher trajectory for crypto over the long run.”
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