The Bitcoin price surge continued on Monday, with Bitcoin (BTC-USD) hitting $122,000 before settling around $120,000. The rally reflects a potent mix of investor optimism, favorable policy signals from the Trump administration, and growing institutional adoption.
The cryptocurrency market’s momentum accelerated following President Trump’s nomination of Stephen Miran to the Federal Reserve’s Board of Governors and an executive order paving the way for 401(k) retirement plans to include crypto investments. This policy shift could make digital assets more accessible to millions of retirement savers.
At the same time, inflows into Bitcoin-focused exchange-traded funds (ETFs) have reached record levels, and more public companies are adding Bitcoin to their balance sheets as part of a long-term diversification strategy.
Ethereum Joins the Rally
Bitcoin wasn’t alone in benefiting from bullish sentiment. Ethereum (ETH-USD), the second-largest cryptocurrency by market capitalization, reached price levels not seen since 2021. Ethereum has surged roughly 190% since April’s market lows, as companies increasingly view it as a strategic asset tied to decentralized finance (DeFi) and blockchain infrastructure.
Institutional players are not just betting on price appreciation — they are also investing in Ethereum for its role in powering digital assets like stablecoins and NFTs. This dual appeal of technology and investment potential continues to strengthen Ethereum’s position in the market.
Macro Tailwinds: Fed Rate Cuts and Monetary Policy Shifts
The Bitcoin price surge has also been fueled by macroeconomic expectations. Investors anticipate the Federal Reserve will begin cutting interest rates in September. Lower rates tend to make risk assets like cryptocurrencies more attractive, as borrowing costs decline and liquidity increases.
According to Sean Farrell, head of digital asset strategy at Fundstrat, “If the Fed is cutting into an economy that is still growing, with unemployment in check and inflation elevated, that is a macro cocktail that should favor allocation to crypto.”
Stephen Miran, Trump’s nominee for the Fed board, has historically supported a weaker U.S. dollar policy — a stance that typically benefits commodities, equities, and crypto assets. Such a policy shift could help sustain higher Bitcoin prices over the longer term.
Regulatory Tailwinds from Washington
Policy changes under the Trump administration have provided a clear boost to crypto markets. Last week’s executive order directing the Department of Labor to explore allowing cryptocurrencies in 401(k) retirement plans marked a significant milestone.
This move would integrate crypto into the traditional retirement system, potentially unlocking billions in fresh investment capital. Trump’s public and private endorsements of Bitcoin, as well as remarks from Eric Trump urging investors not to “bet against BTC and ETH,” have further reinforced market confidence.
Short-Term Froth, Long-Term Potential
While some analysts caution that the market may be overheated in the short term, many believe the Bitcoin price surge reflects deeper structural changes. Tom Essaye, founder of Sevens Report Research, observed, “The administration is pushing crypto. They are pushing Bitcoin. Bitcoin is the lead dog in the crypto market… longer term, there are some fundamental changes here that I think are bullish for it and will send it much higher in the future.”
If institutional adoption continues to accelerate, and regulatory conditions remain favorable, Bitcoin could see sustained growth beyond the current rally. For now, both Bitcoin and Ethereum’s gains highlight the powerful combination of policy support, macroeconomic shifts, and technological relevance driving the digital asset market forward. And with more traditional investors beginning to view Bitcoin as a legitimate hedge against inflation and currency risk, the foundations for continued expansion appear stronger than ever — setting the stage for potential new all-time highs in the months ahead.
Featured Image: Freepik
