On Monday morning, Bitcoin surged past $122,000, coming within a whisker of its all-time high of $123,218 set on July 14. The move followed a rebound from key support at $120,080 on Sunday evening, with the cryptocurrency gaining more than 3% since then.

Technical Signals Point to Ongoing Market Strength

The daily chart shows the RSI (Relative Strength Index) at 65, well above the neutral 50 level. The MACD (Moving Average Convergence Divergence) confirmed a bullish crossover on Monday. Analysts say that if the momentum holds, Bitcoin could challenge a new record high.

However, they caution that if the rally loses steam, a pullback toward $116,000 — a major daily support — could follow.

Trump’s Policy Shift and Institutional Money Fuel the Rally

Another market boost came from President Donald Trump’s Thursday executive order instructing the Labor Department to allow 401(k) retirement plans to invest in cryptocurrencies, private equity, and other alternative assets.

Experts believe opening these accounts to Bitcoin could bring a significant wave of demand. Analyst Fan even described the potential inflows as “substantial.”

Spot Bitcoin ETFs also continue to play a major role, with last week’s net inflow hitting $253 million. Ethereum is showing similar strength — in fact, ether-focused ETFs recorded a record $461 million inflow, surpassing Bitcoin’s ETF numbers.

Global Markets Watching Inflation and Geopolitics

On Wall Street, futures posted modest gains Sunday night — Dow Jones +0.1%, S&P 500 +0.1%, and Nasdaq 100 +0.1%. This follows a strong close last week, with the Nasdaq Composite setting a fresh high and the S&P 500 just shy of its record.

According to Jay Woods of Freedom Capital Markets, the market may now be in a “digesting gains” phase, moving sideways. This week’s main focus will be inflation data — Tuesday’s CPI (Consumer Price Index) and Thursday’s PPI (Producer Price Index).

These reports could shape expectations ahead of the September Fed meeting and the upcoming Jackson Hole Economic Symposium (Aug. 21–23), which often sets the tone for future monetary policy.

Europe and Asia Eye Trade Truce and Currency Moves

European markets are poised for a positive open — FTSE 100 slightly higher, CAC 40 +0.2%, DAX +0.3%, and FTSE MIB +0.5%. Asian markets were quieter as traders await news on whether the U.S.–China tariff truce will be extended beyond August 12.

Emerging-market currencies gained on a weaker U.S. dollar — led by the Indonesian rupiah in Asia, while the Romanian leu and Czech koruna outperformed in Europe ahead of planned U.S.–Russia talks. The MSCI Emerging Market Currency Index and the MSCI Emerging Market Equity Index both posted small gains.

What Traders Are Watching Next

Key factors on traders’ radars:

  • Signs of a softer Fed stance

  • Possible extension of the U.S.–China tariff truce

  • Developments in U.S.–Russia negotiations


Analysts believe a combination of these factors could pave the way for further gains — not just for cryptocurrencies, but also for equities and emerging-market currencies.

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