Bitcoin surged past the $120,000 mark for the first time on Monday, lifted by institutional demand and a renewed push in Washington to clarify U.S. crypto regulations.
The world’s largest cryptocurrency climbed as high as $123,205 before paring gains to trade around $121,600 as of 9:19 a.m. in New York, according to CoinGecko data. The move represents a 3.4% intraday gain and adds to Bitcoin’s roughly 30% year-to-date performance. The rally extended across the crypto market, with Ether breaching $3,000 and altcoins like XRP and Uniswap also notching gains.
The breakthrough comes as the U.S. House of Representatives kicks off “Crypto Week,” a legislative push aimed at establishing clearer regulatory guardrails for digital assets. Among the key proposals up for debate are the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate-backed GENIUS stablecoin framework—all of which reflect the increasingly pro-crypto stance of the Trump administration, now in its second term.
“This shift signals a maturing perspective on Bitcoin — not merely a speculative asset, but a macro hedge and a structurally scarce store of value,” said George Mandres, senior trader at XBTO Trading LLC.
Institutional Fuel
The rally is being fueled in part by growing institutional interest. U.S.-listed Bitcoin ETFs saw over $2.7 billion in net inflows last week, the fifth-highest total since their launch in January 2024. Assets under management for the 12 ETFs now exceed $151 billion, signaling growing confidence from traditional investors. Meanwhile, open interest in Bitcoin futures hit a record $86.3 billion, per data from Coinglass, further indicating robust market participation.
Adding to the momentum, a short squeeze over the weekend wiped out more than $1 billion in bearish positions, accelerating the price move upward. As Bitcoin hit new highs, smaller tokens followed suit: Ether rose 2.9%, while Chainlink and Solana also saw meaningful gains.
Legislative Clarity
Market participants view the legislative developments as a critical catalyst.
“Bitcoin’s cleared $120,000, but the real test is $125,000,” said Rachael Lucas, crypto analyst at BTC Markets. “Support at $112,000 and any dip looks like a buying opportunity, not a reversal.”
The anticipated votes on the three crypto bills could provide the clearest signal yet of the U.S. government’s policy direction toward the industry. The Trump administration has leaned heavily toward deregulation and innovation-friendly stances, and many market watchers believe formalized policy will unlock further institutional participation.
Still, not all analysts are convinced the rally is entirely sustainable.
“In my view, this isn’t a macro-driven rally, but rather an isolated event,” said Nicolai Sondergaard, research analyst at Nansen. “That said, recent US policy developments such as fiscal expansion and expectations of further monetary easing have created a backdrop that is undeniably favorable for Bitcoin.”
Corporate Holdings on the Rise
MicroStrategy, the largest corporate holder of Bitcoin, continues to ride the wave. The company’s BTC holdings are now valued at over $73 billion, with founder Michael Saylor reiterating support for Bitcoin as a strategic treasury asset.
Bitcoin’s resurgence follows a choppy few months hovering near the $100,000 mark, amid investor uncertainty tied to President Trump’s trade policy and broader economic signals. But with U.S. equity markets also returning to all-time highs, crypto markets appear to be regaining momentum.
As “Crypto Week” progresses in Congress, all eyes are now on whether Bitcoin can sustain its climb—or even challenge the next key resistance at $125,000.
