The price of Bitcoin has reached a new high again, breaking through the $123,600 mark, surpassing the historical record set in mid-July. This rise is in sync with the upward trend of the US stock market, reflecting that global investors are expanding their allocation to risk assets.

Over the past year, the steady rise in Bitcoin's price has been mainly attributed to two factors: first, a relatively friendly regulatory environment; second, the strategy of publicly listed companies, represented by Strategy, to continuously increase their holdings of Bitcoin. This practice of corporate accumulation of cryptocurrencies has already created a demonstration effect and gradually spread to other digital currencies such as Ethereum, driving a comprehensive strengthening of the entire crypto asset market.

Market analysts point out that the correlation between cryptocurrencies and traditional financial markets reflects the optimistic sentiment shared by speculative sectors and mainstream asset markets. Recent U.S. inflation data met expectations, reinforcing market expectations for a possible rate cut by the Federal Reserve in September. This loose financial environment is driving funds from traditional blue-chip stocks into more volatile crypto assets.

Chris Newhouse, the research director of Ergonia, stated: "Cryptocurrencies show a positive correlation with the stock market, with Ethereum having a stronger association with the stock market than Bitcoin. Currently, the overall market sentiment remains positive."

From a technical perspective, Bitcoin's bullish momentum is strong, successfully breaking through the previous high and reaching around $123,600. Although it may face some resistance in the short term, in a strong trend, a breakout is often just a matter of time. Various technical indicators are all showing a bullish arrangement, indicating that the upward trend is still ongoing.

However, investors also need to be wary of the risks brought by excessive chasing of the rise. Market participants should closely monitor the resistance level at $124,000; if it is successfully broken, it may lead to further upward space.

For Ethereum, the market also shows a similar strong pattern. Investors can focus on the range of $4,720 to $4,750, and a breakout may lead towards the target of $4,840.

Overall, the cryptocurrency market is currently showing a strong upward momentum, but investors should remain cautious when participating and manage risks effectively.