Bitcoin Smashes Record as Ether Flirts With All-Time High — Before Inflation Pulls the Plug

Bitcoin blasted past its previous peak this week, hitting $124,496 — topping its July high — while ether came within spitting distance of its 2021 record of $4,866, peaking at $4,791 overnight.

The rally didn’t last. By Thursday morning, hotter-than-expected US wholesale inflation data yanked the wind out of crypto’s sails. Bitcoin slipped 3% to $118,481, ether dipped 2% to $4,629.

Both coins had been riding high since Tuesday, when a cooler-than-expected consumer inflation report boosted hopes for a Federal Reserve rate cut in September. Stocks rode the same wave, with the S&P 500 and Nasdaq setting fresh records.

For the week, bitcoin is still up nearly 2%, but ether has been the real standout — surging more than 14%. Since June, ether has flipped bitcoin as the market leader in trading volume, up 85% on heavy institutional buying, shrinking supply, and corporate accumulation in a friendlier US regulatory climate.

“This isn’t just another speculative pump,” said Ben Kurland, CEO of research and trading platform DYOR. “Institutional adoption, real-world use cases, and global liquidity are now driving the market. That’s a whole different ballgame.”

Bitcoin’s climb has been fueled by expectations of Fed easing, sustained Wall Street buying, and a crypto-friendly push from the Trump administration — including an executive order allowing crypto assets in 401(k) retirement accounts.

“Technically, a sustained break above $125K could propel BTC to $150,000,” noted Tony Sycamore, analyst at IG Markets.

It’s been a strong year for the asset class:

• Bitcoin is up nearly 32% in 2025.
• S. stablecoin rules passed.
• SEC overhauled regulations to accommodate crypto.
• Market cap for all cryptocurrencies has ballooned to $4.18 trillion, up from $2.5 trillion in November 2024.

Still, crypto in retirement plans isn’t without risk — volatility can be brutal compared to stocks and bonds. But for now, the message from markets is clear: Bitcoin’s in uncharted territory, ether’s on its heels, and both are moving out of “alternative asset” territory into the mainstream investment playbook.

With input from CNBC and Reuters.