Bitcoin Briefly Surpasses $120,000; Ether Hits 2021 Highs After Breaking $4,000 Barrier
August 11, 2025 — Bitcoin showcased a significant rally over the weekend, briefly reclaiming the $120,000 mark, edging closer to its all-time highs. Meanwhile, ether surged past the psychologically and technically important $4,000 level for the first time since December 2024, reaching prices not seen since December 2021. According to data from Coin Metrics, Bitcoin was last trading steady near $118,981.86 after the overnight upswing. Ether also stabilized around $4,256.90 following its breakout on Friday when it crossed the $4,000 threshold, a level that historically presents resistance for investors. Although both cryptocurrencies traded off their day’s peak prices, the momentum highlights renewed strength in digital assets.
This price action unfolded alongside a positive trajectory in U.S. equity futures earlier Monday morning, as market participants anticipated a slew of crucial inflation reports. While stocks initially approached all-time highs, they later pulled back, with crypto assets experiencing a correlated cooling effect.
Equities linked to cryptocurrency also saw gains amid the rally. Shares of Coinbase rose nearly 3%, Circle added over 1%, and Galaxy Digital advanced 3%. Additionally, Bitcoin-related investment trust Strategy climbed more than 1%.
Market analysts suggest that the rapid growth of cryptocurrency during Asia’s trading hours played a considerable role. Markus Thielen, CEO of 10x Research, highlighted that Bitcoin’s breakout in early July coincided with the U.S. government’s unprecedented expansion of debt following the enactment of the “Big Beautiful Bill,” which raised the debt ceiling by $5 trillion.
“Bitcoin’s breakout is not random; it’s being powered by the fastest expansion of U.S. debt in history,” Thielen explained. “This momentum is unlikely to slow, regardless of whether the economy strengthens or slips into recession. The flood of new debt acts as a tailwind for hard assets such as bitcoin and gold.”
Looking ahead, Thielen sees the next major resistance level for Bitcoin at approximately $133,000, noting that current market positioning and structure favor bullish investors.
Ether’s rally has been particularly notable due to heightened inflows into ether-focused ETFs, which recorded $326.83 million in investments last week, surpassing bitcoin ETFs that welcomed $246.75 million. This trend reflects growing investor confidence in ether as the second largest cryptocurrency.
The positive sentiment extended to ether-linked stocks as well. Bitmine Immersion Technologies shares surged by 25%, maintaining gains from a strong Friday close. SharpLink Gaming shares also rose 11%, buoyed by increased activity in the ether treasury sector.
Despite the rally, market observers caution that August has historically been a soft month for both equity and crypto trading volumes, suggesting a possible strategic cooling period following the robust gains seen in the second quarter.
Key Takeaways:
- Bitcoin briefly topped $120,000, stabilizing just under that level.
- Ether surpassed $4,000, reaching highs last seen in late 2021.
- Ether ETFs outpaced bitcoin ETFs in net inflows last week.
- Cryptocurrency-linked stocks experienced solid gains amid the rally.
- The surge aligned with U.S. debt expansion policies, driving interest in hard assets.
- Next significant resistance for bitcoin is expected around $133,000. As investors prepare for upcoming inflation data and monitor macroeconomic developments, the cryptocurrency market remains highly active, driven by a complex interplay of fiscal policy, market sentiment, and global trading behaviors.
Reported by Tanaya Macheel, CNBC