FX.co ★ Bitcoin Rallies Above $122,000

Bitcoin experienced a significant climb of over 2% on Monday, surpassing $122,000 and marking a new all-time high. This surge reaffirms its status among the top global assets, with its market capitalization now estimated at $2.4 trillion. The recent rise is driven by strong institutional demand, notably through spot exchange-traded funds, coupled with a favorable policy stance from the US and positive global macroeconomic conditions. Analysts highlight growing concerns regarding the US fiscal path, especially following former President Donald Trump's tax-cut and spending legislation, which increased the debt ceiling by $5 trillion, exacerbating worries about long-term debt sustainability. Further propelling the upward momentum is the anticipation of additional rate cuts by the Federal Reserve, with markets increasingly expecting more accommodative monetary policies. Trump has persistently exerted political pressure on Fed Chair Jerome Powell to lower borrowing costs in a bid to spur economic growth.