Bitcoin started the new workweek extremely close to its all-time high. At the time of writing, the coin is only 1% away from ATH.
The Quickex editorial team has compiled the reasons for Bitcoin’s growth in one review. We explain why, in the near future, the cryptocurrency risks moving into a correction and whether it’s worth expecting a new high this month.
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Why Bitcoin Rose
In short — thanks to Trump. Trump signed an executive order allowing Americans to include cryptocurrency in retirement accounts known as 401(k)s.
As of August 2025, there are over 715,000 401(k) plans in the United States, opened for more than 70 million people.
Important! A 401(k) plan is usually created by an employer for all employees. For example, a large corporation may have one 401(k) plan covering tens of thousands of workers. Therefore, the number of plans is lower than the number of participants.
In 2025, the volume of assets in defined contribution retirement plans, including 401(k)s, amounted to $12.2 trillion, of which $8.7 trillion comes directly from 401(k) plans.
Experienced asset managers usually advise their clients to invest 1–5% of their portfolio in cryptocurrency. Even if we take an average of 3%, this would mean annual investments of $261 billion — a significant boost for the 4-trillion-dollar market.
There is also other positive news that supported Bitcoin’s growth. Among them is the renewed inflow into spot ETFs. Interest in this instrument forces fund issuers to buy BTC. At the time of writing, more than 7% of Bitcoin’s supply has already been purchased by Bitcoin ETFs. For reference, only 21 million Bitcoins will ever be issued.
Spot Bitcoin ETF inflows. Source: The Block
Bitcoin is also rising on expectations that the US Federal Reserve will cut the key interest rate in September. At the time of writing, over 88% of market participants believe in such a scenario.
Source: cmegroup
As a reminder, on August 12, the US will publish fresh CPI data. The results may shift market expectations. It’s also worth watching Fed Chair Jerome Powell’s speech at the Jackson Hole conference on August 21–23. Negative remarks from Powell could reduce the chances of a September rate cut and put pressure on the crypto market.
Why Bitcoin Might Fall Soon
The crypto community has noticed a significant price gap between Bitcoin’s closing price in the futures market on Friday and its price when trading began on Monday. Last week, BTC futures on the Chicago Mercantile Exchange (CME) closed near $117,000. At the start of the new week, due to Bitcoin’s weekend spot trading surge, trading opened at $119,000.
This price difference is called a gap. Often, the cryptocurrency price tends to move toward this range — a process known as “closing the gap.” While it doesn’t always happen, it often does. Therefore, the gap on CME suggests Bitcoin may soon dip to $117,000–$119,000.
CME Bitcoin futures gap chart
However, the crypto community believes that closing the gap will not hinder Bitcoin’s long-term growth. There are several reasons for the continuation of the bull run, including:
- The likely influx of large-scale investments from US investment funds;
- A high probability of a Fed rate cut in September and a possible second cut before the end of the year;
- Institutional investor interest in cryptocurrency;
- Active efforts by the Trump administration to introduce pro-crypto initiatives and regulate the digital asset market, including the approval of transparent rules for the issuance and circulation of stablecoins under the GENIUS Act.
The community also notes that the Bitcoin balance on crypto exchanges continues to “slim down”. This creates a shortage of cryptocurrency in the market. As history shows, in such conditions, BTC has repeatedly set new highs.
Conclusion
Despite Bitcoin hovering near its peak, the cryptocurrency faces the risk of a correction to $117,000. This drop would help the coin close the gap. Afterward, if positive CPI data is released on August 12, the cryptocurrency could resume its rally.
Long-term forecasts from the crypto community remain positive. Investors believe that the prospect of Fed rate cuts, the growing shortage of cryptocurrency, and other factors will help BTC reach a new all-time high.
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