Late Sunday, Bitcoin surged toward the $122,000 mark, while Ether crossed $4,300 for the first time since December 2021. The upswing came on the back of rising institutional interest, positive market sentiment, and a new policy move announced by the U.S. President Donald Trump.
By 11:25 p.m. ET Sunday, bitcoin was trading at $121,852, up 3.33% in the past 24 hours. Ethereum gained 1.25%, settling at $4,300.
The biggest catalyst came from Trump’s new executive order, directing the U.S. Labor Department to look into allowing cryptocurrencies, private equity, and other alternative assets in 401(k) retirement plans. Analysts believe the move could open the door to massive new demand from millions of American savers.
Augustine Fan, Head of Insights at SignalPlus, noted that allowing crypto in 401(k) plans could trigger substantial buying pressure, adding that the announcement was the key driver behind this week’s rebound.
Institutional interest is showing no signs of slowing. Bitcoin spot ETFs saw $253 million in net inflows over the past week, keeping buying pressure intact despite a slight cooldown after last month’s record high. Ether’s momentum has been even stronger, with spot ETH ETFs pulling in $461 million in the same period, surpassing bitcoin’s inflows.
Rachael Lucas, an analyst at BTC Markets, noted that the surge in institutional buying has led to significant short liquidations and returned Vitalik Buterin to billionaire status. She added that with Ether only 11% below its $4,878 all-time high, it could soon test that level if the momentum holds.
Corporate crypto holdings are also playing a role. Over the weekend, SharpLink Gaming reportedly acquired 52,809 ETH, underscoring how more companies are adding digital assets to their treasuries.
Still, traders are being urged to watch key economic data coming this week. The U.S. Consumer Price Index (CPI) for July will be released on Tuesday, followed by the Producer Price Index (PPI) on Thursday.
At the last Federal Reserve meeting, Chair Jerome Powell hinted that a September interest rate cut is now less certain, with the decision hinging on upcoming inflation figures. For now, CME FedWatch data shows an 88.4% chance of a 25 basis point cut to 4.00-4.25% at the September 17 meeting.
