Bitcoin soared to a fresh all-time high on Wednesday, fuelled by investor optimism that the US Federal Reserve will soon lower interest rates. The world’s largest cryptocurrency touched £96,420 in afternoon trading, narrowly surpassing its previous July peak of £96,388, according to CoinGecko data.
The rally was mirrored in US equities, where the S&P 500 and Nasdaq set new records and the Dow Jones closed in on its own high. Traders appear emboldened by mounting speculation that the Fed will pivot towards monetary easing, a prospect that typically favours so-called ‘risk-on’ assets such as technology shares and cryptocurrencies.
Bitcoin has gained 6% over the past week and now stands 30% higher than its January opening level of £73,960. The cryptocurrency first breached the psychologically significant £78,400 mark in December, buoyed by Donald Trump’s election victory in November and a surge of interest in newly launched American Bitcoin exchange-traded funds.
President Trump, a vocal advocate for digital assets, has increased pressure on Fed chair Jerome Powell to slash interest rates. In recent days, he has threatened legal action in an attempt to accelerate cuts — an extraordinary intervention in an institution designed to operate independently from the White House.
Ethereum, the second-largest cryptocurrency, also staged a powerful rally, climbing to £3,706, just 3% shy of its November 2021 record of £3,819. Standard Chartered has forecast that Ethereum could reach £19,580 by 2028, citing technological upgrades and expanding institutional adoption.
While the latest surge reflects strong market sentiment, analysts caution that crypto’s fortunes remain closely tied to the broader macroeconomic environment. Should inflationary pressures resurface or rate cuts be delayed, the rally could face a sharp reversal.