Bitcoin Hits New Record High as Ether Nears 2021 Peak Before Pulling Back
On Wednesday, Bitcoin reached a fresh all-time high, surging to $124,496 and surpassing its previous July peak of $123,193.63, according to data from Coin Metrics. Meanwhile, Ether also approached its 2021 record, climbing to $4,791.19—just shy of its all-time high of $4,866.01. However, both leading cryptocurrencies experienced a pullback on Thursday amid hotter-than-expected wholesale inflation data for July.
The initial upward momentum was driven by Tuesday’s cooler-than-anticipated inflation report, which heightened investor hopes for potential Federal Reserve rate cuts by the end of the September policy meeting. This positive sentiment extended beyond cryptocurrencies, as major U.S. stock indices, including the S&P 500 and Nasdaq, also reached new record highs on Wednesday.
By Thursday afternoon, Bitcoin had declined roughly 3.7%, trading near $118,045.99, while Ether fell 4.1% to about $4,532.27. These declines were partly influenced by the release of unexpectedly strong wholesale inflation figures for July, which tempered optimism around monetary easing.
Further contributing to the market’s volatility were remarks from U.S. Treasury Secretary Scott Bessent, who announced via social media that bitcoin forfeited to the federal government would be allocated to the strategic bitcoin reserve established by President Donald Trump earlier this year. Bessent also indicated the Treasury’s intention to explore "budget-neutral pathways" for acquiring additional Bitcoin to grow this reserve.
Despite Thursday’s correction, Bitcoin is positioned for a modest weekly gain of about 1%, while Ether has surged approximately 12% over the same period. Notably, Ether overtook Bitcoin as the leading crypto asset in June, enjoying an 85% appreciation since then. This rally has been supported by substantial institutional buying, reduced supply, and robust adoption by corporate investors, all occurring amid a more favorable regulatory environment for cryptocurrencies.
Analysts are optimistic about the ongoing rally. Jake Kennis of Nansen noted that strong capital flows suggest the upward momentum has further room to continue. Ben Kurland, CEO of crypto research and trading platform DYOR, remarked, “Bitcoin hitting a fresh all-time high and ETH being on the verge of doing so means we’ve moved from speculative mania to a phase where institutional adoption, real-world integration, and global liquidity are driving price discovery.”
Kurland pointed out that simultaneous near-record levels in both major cryptocurrencies indicate broad market conviction rather than isolated rallies. He added, “Momentum this strong rarely burns out instantly, but it also tends to draw in latecomers who can fuel volatility. Right now the story is less about euphoria and more about validation. Crypto is graduating from ‘alternative’ to ‘essential’ in the global portfolio mix.”
As the market navigates this dynamic environment, investors will be closely watching upcoming economic data releases and policy signals that could influence cryptocurrency valuations.
— Reporting by Tanaya Macheel for CNBC, August 14, 2025