FX.co ★ Bitcoin Hits Fresh High

Bitcoin surged past $123,000 on Thursday, setting a new record, driven by increased institutional adoption and expectations of monetary easing. A recent executive order opened avenues for including cryptocurrency in 401(k) retirement plans, reflecting a more accommodative regulatory approach in the United States. Concurrently, there is growing anticipation that the Federal Reserve will resume interest rate cuts. These expectations were bolstered by the latest US Consumer Price Index (CPI) report, which alleviated concerns about tariff-induced inflation, while indications of a softening labor market further supported the prospect of policy easing. Financial markets are now almost unanimously predicting a 25 basis point rate cut in September, with some speculating a possible 50 basis point reduction. Also contributing to Bitcoin's upward trajectory have been continuous inflows into spot exchange-traded funds and acquisitions by public companies, following the lead of the software firm MicroStrategy, which has become a significant Bitcoin advocate. Since the beginning of the year, Bitcoin has appreciated by approximately 28%.