Bitcoin surges to new all-time high above $123,500

Bitcoin briefly traded at $123,512 before easing back to around $121,700

Bitcoin soared to a new all-time high above $123,500 (£90,984) in early Thursday trading, extending a week-long rally that has lifted the broader cryptocurrency market.

Bitcoin briefly traded at $123,512 before easing back to around $121,700.

The world’s biggest cryptocurrency is now up more than 6% over the past week, breaking through its previous July peak of just over $120,000.

Bitcoin’s latest rally reflects the blurring lines between crypto and traditional assets, happening faster than institutional adoption timelines predicted, VOOI CEO and Symbiosis.Finance co-founder Will K said.

While ETFs brought institutions into bitcoin, retail traders are returning to evolved decentralised platforms that have shed their clunky origins, Will said.

Ethereum outpaced bitcoin in percentage gains, jumping 28% over the past seven days to trade above $4,742, inching closer to its November 2021 record of $4,865.

Ethereum’s rally is being driven by strong ETF inflows, institutional accumulation, and a favourable macro backdrop after softer CPI data boosted rate-cut expectations, Bitfinex head of derivatives Jag Kooner said.

Traders have rotated back into risk, with bitcoin and ether both seeing renewed long positioning, while options data shows low implied volatility and a build-up in open interest, signalling that markets expect a sharp move ahead but are hedging downside risk, Kooner added.

The total cryptocurrency market capitalisation now stands at $4.23 trillion, up 1.9% on Thursday, according to CoinMarketCap data.

The crypto rally comes as US equities closed higher on Wednesday, with the S&P 500 and Nasdaq hitting fresh record highs this week. The broader risk-on sentiment has spilled over into digital assets. Bitcoin’s surge has been underpinned by a friendlier regulatory climate in Washington.