Bitcoin has continued to make history as it surpassed its previous price record on Thursday morning (Asia time), coinciding with a strong rise in the US stock market, amid a wave of investors pouring funds into risky assets ahead of important macroeconomic events.

According to market data, BTC has climbed above $124,000, surpassing the peak of $123,205 on July 14, before experiencing a slight profit-taking. This bullish momentum appeared just after the S&P 500 index closed at a record high for the second consecutive session, indicating that Bitcoin is reacting in sync with US stocks as both benefit from an optimistic macroeconomic environment.

Breakthrough in Market Capitalization – Surpassing Google

This breakthrough has made Bitcoin the fifth largest asset globally in terms of market capitalization, surpassing Google with a figure of $2.4 trillion. Currently, BTC's market capitalization stands at $2.46 trillion, while Ethereum (ETH) – the second largest cryptocurrency – has also surged to nearly $575 billion. Together, they now account for about 70% of the total cryptocurrency trading volume.

This surge is the result of a year of accumulated optimism from investors, driven by:

  • A more friendly management policy under President Donald Trump.

  • The spread of the strategy of holding BTC in corporate treasury, initiated by Michael Saylor and MicroStrategy (MSTR), has now been adopted by many smaller businesses.

  • A similar trend is gradually emerging in the Ethereum support community.

Support from Macroeconomic Factors

This week's US inflation report came in as expected, reinforcing the expectation that the Federal Reserve (Fed) will cut interest rates in September. Low interest rates typically help boost the valuation of risky assets by easing financial conditions, thereby creating a spillover effect from blue-chip stocks to more volatile assets like cryptocurrencies.

Technical Outlook

According to technical analysts, once BTC has firmly surpassed the resistance level of $120,000, the next target could be in the range of $135,000–$138,000 if the upward momentum continues.