Bitcoin Nears $122,000, Ether Hits Highs

Bitcoin has surged to around $122,000, while Ether has climbed above $4,300 due to favorable macroeconomic news and ongoing institutional demand. As of Sunday night, Bitcoin was trading at $121,852, reflecting a 3.33% increase in the past 24 hours, and Ether increased by 1.25%. "The resurgence in crypto prices this week has been driven by Trump’s remarks urging regulators to consider the inclusion of cryptocurrencies and private equity in 401(k) portfolios," commented Augustine Fan, Head of Insights at SignalPlus. Recently, Trump signed an executive order instructing the Labor Department to explore this inclusion. Opening access for millions of American retirement accounts to crypto investments could lead to significant purchasing demand, according to Fan. In addition to the 401(k) news, Bitcoin benefits from strong inflows into spot exchange-traded funds (ETFs), which saw an additional $253 million in net inflows this week, sustaining demand despite a recent consolidation. Meanwhile, Ethereum reached its highest price since December 2021, bolstered primarily by institutional interest. Spot Ether ETFs attracted an impressive $461 million in inflows over the previous week, exceeding Bitcoin ETF inflows. "This has resulted in significant short liquidations and has reinstated Vitalik Buterin among billionaires," remarked Rachael Lucas, a crypto analyst at BTC Markets. "With positive momentum and inflows, ETH has a robust case for reaching its previous all-time highs." Currently, Ether is approximately 11% away from its all-time high of $4,878, with prospects of outperforming Bitcoin if institutional interest continues, according to Lucas. The current trend of corporate crypto treasuries remains a significant market factor, highlighted by SharpLink Gaming's recent purchase of 52,809 ETH over the weekend. Jung from Presto Research noted that much of the buying pressure stems from large treasuries, indicating their sustained influence on price trends. Investors should remain vigilant as critical inflation metrics will be released this week, with potential impacts on future rate decisions. The upcoming Consumer Price Index (CPI) report for July is set for Tuesday, and the Producer Price Index (PPI) will follow on Thursday. The CME Group's FedWatch Tool suggests an 88.4% likelihood of a 25 basis point rate decrease to 4.00-4.25% at the next Federal Open Market Committee meeting on September 17. Disclaimer: The Block functions independently to provide timely information about the crypto industry. This article is for informational purposes only and should not be considered financial, legal, or investment advice.