Bitcoin retakes $120,000, ether touches 2021 highs after breaking key $4,000 level

Bitcoin is on the verge of hitting its all-time high again following a significant overnight surge, which also saw ether rise to levels not observed since 2021. Current data from Coin Metrics indicates that bitcoin is valued at approximately $119,782, reflecting a 1% increase. Meanwhile, ether has dipped around 1.6% to $4,181 after achieving its highest price since December 2021 on Sunday, breaking the crucial $4,000 threshold for the first time in many months. This upward momentum in the cryptocurrency market coincides with a rise in U.S. equity futures, as investors brace for an array of essential inflation reports. The stock market itself is hovering near all-time highs, with Coinbase shares experiencing a premarket increase of over 3%. Other companies such as Galaxy Digital and various bitcoin mining firms like Mara Holdings and Riot Platforms have also seen gains of more than 3%. Markus Thielen, CEO of 10x Research, attributes the recent crypto surge to heightened buying activity during the Asian trading hours, a phenomenon linked to the swift growth of U.S. debt. He emphasized that bitcoin's breakout from a period of consolidation in early July corresponds with President Donald Trump’s signing of the Big Beautiful Bill, which included a substantial $5 trillion debt ceiling increase. Thielen remarked, "Bitcoin's breakout isn't random; it's being driven by the fastest expansion of U.S. debt in history, and this trend shows no signs of slowing down. Regardless of whether the economy remains robust or falls into recession, the influx of new debt serves as a favorable condition for hard assets like bitcoin and gold." Looking ahead, the next significant resistance level for bitcoin is set at $133,000, with current market positioning and structure appearing to favor bullish sentiment. In the meantime, stocks associated with ether have responded positively, driven by substantial inflows into newly established treasury companies that have propelled the second-largest cryptocurrency above the psychologically and technically significant $4,000 mark. Shares of Bitmine Immersion Technologies increased by about 11%, while SharpLink Gaming saw a 3% rise. Notably, ether ETFs have experienced greater inflows ($326.83 million) compared to bitcoin ETFs ($246.75 million) over the past week, as reported by SoSoValue.