Bitcoin soared to over 123,500, hitting a new all-time high! Resonating with the US stock market highlights the increasing risk appetite.

On Wednesday, the price of Bitcoin hit a new all-time high, in line with the rising pace of US stocks. Global investors are further entering the realm of risk preference. On Wednesday evening, Eastern Time, the price of Bitcoin surpassed $123,500, exceeding the previous historical peak of $123,200 set on July 14. Shortly before, the S&P 500 index closed at a new high for the second consecutive trading day, continuing its summer uptrend, with the benchmark index breaking records multiple times. For most of the past year, the price of Bitcoin has steadily risen, benefiting from the favorable legislative environment created in the United States after President Donald Trump took office. Publicly traded companies such as Michael Saylor's Strategy company (MSTR.US) have adopted a popular corporate strategy of accumulating this native cryptocurrency, increasing demand. This strategy has recently spread to smaller competitive currencies such as Ethereum, driving a general rise in the digital asset market. This coordinated trend highlights the shared optimistic sentiment between speculative market areas and mainstream benchmark indices. The inflation data released this week in the United States met expectations, strengthening market expectations that the Federal Reserve will cut interest rates in September. This will relieve financial pressures and prompt funds to flow from blue-chip stocks to more volatile digital tokens. Chris Newhouse, research director at Ergonia, said, "Cryptocurrencies are positively correlated with stocks, with Ethereum showing a stronger correlation with the stock market than Bitcoin. Overall market sentiment is positive." The rise in Ethereum is due to the continued demand from newly active treasury management companies, while the steady rise of Bitcoin relies on the continuous inflow of funds through exchange-traded funds (ETFs), despite facing technical resistance. "Inflation slowdown, increasing rate cut expectations, and unprecedented institutional participation through ETFs have formed strong bullish factors," said Ben Kurland, CEO of the cryptocurrency research platform DYOR. "The difference in this uptrend lies in the maturity of demand basis; this rise is not just driven by retail investors, but also by asset management companies, corporations, and sovereign wealth funds."