Bitcoin surged to a new all-time high today, bolstered by growing expectations that the US Federal Reserve may begin cutting interest rates in the near future, reigniting investor appetite for risk assets.

The world’s largest cryptocurrency climbed past its previous record, driven by a combination of macroeconomic optimism, institutional demand, and a broader rally in digital assets.

Investors are increasingly betting that the US central bank will pivot to monetary easing amid signs of cooling inflation and weakening economic data. Lower interest rates typically make non-yielding assets like Bitcoin more attractive, as borrowing becomes cheaper and returns on traditional safe havens decline.

These expectations have added fresh momentum to Bitcoin’s bull run, which has seen it gain more than 20 percent over the past month alone.

Market analysts point to strong inflows into spot Bitcoin exchange-traded funds (ETFs), which have made it easier for institutional investors to gain exposure to the cryptocurrency without directly holding it.

The approval of these products earlier in the year marked a significant milestone for the industry, helping to legitimize Bitcoin in the eyes of traditional finance.

Increased interest from asset managers, hedge funds, and even some pension funds has contributed to a tightening supply in the market, pushing prices upward.

At the same time, retail participation has also picked up, with online trading platforms reporting heightened activity as prices near psychological thresholds.

The current rally has also been supported by geopolitical tensions and ongoing concerns about currency debasement, which continue to drive investors toward decentralized digital assets as alternative stores of value.

Despite the optimism, some experts caution that Bitcoin’s volatility remains high, and any shift in the Federal Reserve’s tone or unexpected economic shocks could trigger a pullback.

Still, for now, the bullish sentiment appears firmly in place, with traders closely watching central bank signals and macroeconomic indicators for further cues.

Bitcoin’s fresh record is seen by many in the crypto community as a validation of its long-term viability, as the asset continues to mature and find broader acceptance in mainstream financial circles.