Bitcoin Nears Record Peak, Ethereum Smashes $4K as Market Eyes Next Big Rally
Bitcoin has inched closer to its historic high following a sharp overnight surge, while Ethereum climbed to price levels last seen in 2021.
At last check, Bitcoin was trading around $118,981.86, showing stability after touching higher levels earlier in the day. Ethereum held firm at $4,256.90, just after breaking above $4,000 on Friday — its first time crossing that mark since December 2021. Both cryptocurrencies eased slightly from their intraday highs as the broader market cooled.
This price action came alongside early strength in U.S. equity futures, with investors awaiting crucial inflation data. Stocks flirted with record highs before easing back, pulling crypto prices down slightly in tandem.
Crypto-linked stocks followed the rally’s momentum — Coinbase gained almost 3%, Circle added over 1%, Galaxy Digital rose by 3%, and Bitcoin proxy firm MicroStrategy saw a jump of more than 1%.
Historically, August tends to be a softer month for trading, including cryptocurrencies, so many market watchers see this pullback as a healthy pause after the heated rally in Q2.
According to Markus Thielen, CEO of 10x Research, the current bullish momentum is being driven heavily by buying during Asian trading hours, fueled by the rapid expansion of U.S. debt. He highlighted that Bitcoin’s breakout in early July aligned with the signing of a $5 trillion debt ceiling increase by President Donald Trump.
“This is not a random move. The fastest U.S. debt expansion in history is acting as a strong tailwind for hard assets like Bitcoin and gold,” Thielen explained. “With current positioning and market structure favoring bulls, the next resistance near $133,000 is already on the radar.”
Ethereum-related stocks also enjoyed strong gains, boosted by inflows into newly launched treasury-focused companies. The inflow into Ethereum ETFs last week reached $326.83 million, surpassing Bitcoin ETFs at $246.75 million.
Bitmine Immersion Technologies surged 25% after a similar rally on Friday, while SharpLink Gaming jumped 11%. Analysts point out that breaking past the $4,000 level could open the door for Ethereum to aim at new milestones, given its historical importance as both a psychological and technical barrier for investors.
