Bitcoin Surges Amid Record Global Liquidity, US Retirement Plans Back Crypto

Bitcoin reached new all-time highs in August supported by a surge in global liquidity and positive regulatory developments, including a U.S. executive order allowing 401(k) plans to invest in Bitcoin, which could drive nearly $89 billion in inflows. Institutional confidence remains strong, with significant Bitcoin acquisitions by entities like MicroStrategy, while on-chain data shows short-term market resilience. The broader cryptocurrency market showed modest gains with Bitcoin and Ethereum advancing, though trading volumes declined, reflecting reduced market activity. Wall Street analysts, including Jeremy Siegel and Eric Johnston, express bullish outlooks tied to expected Federal Reserve rate cuts influenced by President Donald Trump’s policies, potentially benefiting risk assets and cryptocurrencies. Market participants remain cautiously optimistic ahead of key U.S. economic data releases, with technical analyses suggesting consolidation rather than bearish sentiment in major digital assets like Bitcoin, Ethereum, and Solana. Overall, the combination of monetary easing, institutional adoption, and political factors is creating a favorable environment for cryptocurrencies entering September.