As investors continued to pile into risk assets across global markets, Bitcoin surged to a fresh record high during Wednesday's trading session, closely tracking the upward momentum in U.S. equities.

Price data shows Bitcoin once broke through the $123,500 level, surpassing its previous all-time high of $123,205.12 set on July 14.

This new milestone comes shortly after the S&P 500 notched its second consecutive record close, extending a summer rally that has seen repeated highs.

Notably, Bitcoin's latest surge once pushed its total market capitalization to $2.45 trillion-overtaking Google to rank among the top five most valuable assets globally, only trailing gold, Nvidia, Microsoft, and Apple.

Holding Crypto Goes Mainstream

Over the past year, Bitcoin's price has steadily climbed, buoyed by a crypto-friendly regulatory environment in Washington following President Trump's election. Companies like Strategy (formerly MicroStrategy) have aggressively accumulated Bitcoin, fueling demand for the world's largest cryptocurrency.

As of Wednesday's close, Strategy's Bitcoin holdings were valued at a record $77.2 billion.

This corporate adoption trend has recently spread to other cryptocurrencies, such as Ethereum, driving a broader rally in digital assets.

The parallel rise of Bitcoin and U.S. stocks suggests speculative corners of the market are drawing optimism from the same sources as mainstream benchmarks.

Tuesday's U.S. inflation data, which largely met expectations, reinforced bets that the Federal Reserve will cut rates in September-loosening financial conditions and encouraging capital to flow from blue-chip stocks into more volatile digital tokens.

“Crypto has been positively correlated to equities with the relationship stronger for ETH than BTC,” said Chris Newhouse, research head at Ergonia. “General sentiment looks positive.”

Ben Kurland, CEO of crypto research platform DYOR, noted, “The combination of moderating inflation, growing expectations for rate cuts, and unprecedented institutional participation through ETFs has created a powerful tailwind. What's different this time is the maturity of the demand base - this rally isn't just retail euphoria, it's structural buying from asset managers, corporates and sovereigns.”