Bitcoin Hits Record High Amid Global Risk-On Sentiment


Bitcoin surged past the $118,000 mark this week, setting a new all-time high as investors worldwide poured money into risk assets amid signs of economic stabilization and central banks hinting at a pause in interest rate hikes.

The flagship cryptocurrency gained over 12% in the past seven days, fueled by strong inflows from institutional investors, renewed enthusiasm around digital assets, and a broader rally across global equity markets. Analysts attribute the price surge to a combination of macroeconomic optimism and evolving use cases in financial markets.

“We're witnessing a powerful risk-on sentiment globally, and Bitcoin is once again at the center of it,” said Daniela Wong, a crypto strategist at Axis Capital. “With volatility cooling in traditional assets and inflation under control in key economies, investors are reallocating into alternative stores of value.”

Macro Tailwinds Driving Crypto Momentum

The rally comes amid signs that the U.S. Federal Reserve, European Central Bank, and other major institutions may begin easing monetary tightening cycles after more than two years of aggressive rate hikes. Lower yields and stronger liquidity have historically supported crypto markets.

At the same time, sovereign wealth funds and major hedge funds have resumed adding digital assets to their portfolios, with Bitcoin ETFs and tokenized assets gaining traction in regulated financial environments.

Adoption Continues to Expand

Recent announcements from countries like Brazil, Japan, and the UAE regarding regulatory clarity and CBDC rollouts have further supported confidence in the broader blockchain ecosystem.

Meanwhile, BlackRock, Fidelity, and several major global banks have expanded custody and investment offerings tied to Bitcoin, giving institutional investors more tools to gain exposure.

Cautious Optimism Remains

Despite the rally, experts caution that volatility remains a core characteristic of the crypto market. Global regulatory developments, tech risks, and geopolitical shocks could trigger sharp reversals.

“Bitcoin may be in a breakout phase, but investors should remain disciplined,” said Arjun Patel, head of crypto trading at Stratos Markets. “We could still see sharp pullbacks in the short term.”

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