New $120K record for Bitcoin as US legislation looms

by Kirk Ogunrinde and Suvashree Ghosh 

Bitcoin breached $120,000 for the first time, with investor enthusiasm showing few signs of dimming as the US House of Representatives prepares to consider key industry legislation during its “Crypto Week” starting Monday. 

The cryptocurrency bellwether rose as much 3.4% to $123,205 as of 9:10 a.m. in London as digital assets staged a broad advance. Ether, the second-largest token, also gained, along with a host of smaller coins. The crypto gains came as stock markets across Europe retreated.  

After surging on the election of Donald Trump to a second US presidential term, Bitcoin had settled into a pattern of fluctuating on either side of $100,000 for several months. Concern about Trump’s political and economic policies had helped to temper optimism over the pro-crypto agenda of his administration. Now with other risk assets such as US stocks back around record highs, Bitcoin has also resumed its push higher.   

Progress on crucial crypto legislation is adding fresh fuel to the rally. The House will debate and possibly vote this week on the CLARITY Act, Anti-CBDC Surveillance State Act and the Senate’s GENIUS stablecoin package as Republicans move to advance Trump’s crypto-friendly agenda.  

The prospect of a clear US regulatory framework, along with Bitcoin’s steady advance in the face of Trump’s chaotic trade policy, has bolstered confidence in the asset class among institutional investors.  

“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.  

Investors poured more than $2.7 billion into the group of US Bitcoin ETFs last week, marking the fifth-largest weekly net inflow since their debut in January last year. Collectively, the 12 ETFs now manage about $151 billion in assets. Open interest in Bitcoin futures reached a record high of $86.3 billion on Monday, according to data from Coinglass. 

Bitcoin is now up roughly 31% for the year after more than doubling in 2024. Bitcoin’s renewed momentum has also spilled over to smaller tokens — second-ranked Ether rose as much as 2.4%, while XRP and Solana were among other coins advancing on Monday. 

“Bitcoin’s cleared $120,000, but the real test is $125,000,” said Rachael Lucas, a crypto analyst at BTC Markets. While short-term profit booking can be expected, “the uptrend has fuel” driven by strong demand from exchange traded funds, she added. “Support at $112,000 and any dip looks like a buying opportunity, not a reversal.” 

Helping to fuel the latest rally was the liquidation of bearish crypto bets at the end of the week. Traders who shorted Bitcoin bore the brunt of the rapid damage, with over $1 billion in positions wiped out, according to data from Coinglass.  

Some analysts aren’t totally sold on the token’s continued rise.  

“In my view, this isn’t a macro-driven rally, but rather an isolated event,” said Nicolai Sondergaard, a 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.”