BTC bull run nears all-time high at $122,000, ETH hits 4-year peak — Key factors driving rally

Bitcoin (BTC) rose to its latest high of $122,776.27 on Monday, while approaching all-time highs as it climbed 0.73% over the last 24 hours or more than $4,300 amid a spurt in institutional ETF demand, bullish macro momentum and the anticipation of the US inflation data. Another crucial factor behind the rally was US President Donald Trump’s executive order last week, opening the $12.5 trillion 401(k) market to crypto and private equity.

With this latest high, BTC is approaching its lifetime high of $123,153.22 achieved on July 14, 2025. Sustained ETF buy has led to high demand as ETFs extended a 13-week inflow streak by adding $403 million in net inflows on August 8. The momentum in BTC has broken a bullish flag pattern, which matches a mathematical target called the 1.618% Fibonacci extension, which was calculated by measuring BTC's past two biggest crashes in 2018 and the 2022 bear market. Making a case for a possible turning point, analysts say that above $118,000, the next possible price point to target is $126,124, another Fibonacci level (127.2%). The market is also awaiting the US inflation data, and with Citi already raising its S&P 500 target to 6,600, any announcement of a lower print could increase demand for BTC.

At the time of filing the story (8 pm), BTC's m-cap stands at $2.39 trillion, with 19.9 cumulative supply in circulation. The world's biggest digital asset has seen a 4.41% rise in price over the past week and a 2.49% in the past month. The past year, especially the period after the US elections in November 2024, has seen BTC smashing all records, almost doubling (98.66%) from $58,719 on August 12, 2024.

"Consolidating near $119K, this marks the bulls’ second attempt to break a key resistance zone after last month’s failed push that sent prices below $112K. A decisive hold above current levels could set the stage for a rally toward $140K. However, a hotter-than-expected CPI reading could trigger some market volatility, testing investor sentiment and the strength of the ongoing bullish momentum," Edul Patel, Co-founder and CEO of Bengaluru-based crypto exchange Mudrex tells Fortune India.

He says Ethereum has outperformed Bitcoin’s weekly gains, and that the next key psychological barrier sits at $5,000. "The coming two months will be crucial in determining whether this rally can sustain its pace and push toward new all-time highs."

Bitcoin’s sharp rebound reflects renewed investor confidence as the Fed signals three rate cuts in 2025, says Avinash Shekhar, Co-Founder & CEO, Pi42, a homegrown crypto exchange. "Momentum is building toward a potential new all-time high, fueled by easing inflation expectations and strong on-chain activity."

Ethereum, the biggest altcoin and second biggest crypto, breached $4,000 mark for the first time since 2021, owing to massive ETF inflows. Ethereum has seen a 1.74% rise in m-cap to 517.6 billion, and its latest price indicates a 1.81% increase in the past 24 hours to $4,289.45. Investors see scope for further gains if macro conditions align, with ETH hitting the level for the first time in four years.

"While profit-taking is natural after such rallies, the combination of accommodative monetary policy ahead and growing institutional interest is underpinning optimism across digital assets. Short-term corrections will remain part of the journey, but the broader trajectory continues to point toward long-term bullish momentum in the crypto market,” Pi42's Shekhar.

Shivam Thakral, CEO of BuyUcoin, says the crypto funds received massive inflows in a single day, putting BTC and ETH back in rally mode. "Bitcoin has reclaimed $121,000 mark amid a regulatory push by the Trump administration. Bitcoin may face some resistance at $124,000 level with immediate support at $120,000. The overall market sentiment looks positive with indicators of a fresh rally in the coming weeks."

Stakeholders say the US is seeing a strong shift in how investors view digital currency. More than half of the largest U.S. banks are now progressing from observation to active rollout of digital asset services, with moves into custody, tokenisation, and restricted trading for wealth clients, says Himanshu Maradiya, Founder and Chairman, CIFDAQ. "Stablecoin projects, tokenised deposits, and integrated crypto trading are gaining traction, signalling a clear shift toward mainstream adoption. While access is still concentrated among high-net-worth and advisory clients, the infrastructure buildout is accelerating, positioning crypto for deeper integration into retirement portfolios and broader capital markets."

Experts believe that with regulatory momentum and price strength aligning, the market’s next leg could push it toward new all-time highs. In another big development, Michael Saylor-led Strategy, a listed tech giant in the US, has bought another tranche of 155 BTCs for $18 million, which translates into an average price of $116,401 per bitcoin. With this, Strategy, which started accumulating BTCs exactly five years before in 2020, now holds a total of 628,946 BTC worth around $76 billion in value, around 3% of BTC's total supply of 21 million.