Bitcoin surged past the $120,000 mark for the first time in its history on Monday, as optimism grew over potential policy breakthroughs for the cryptocurrency sector in the United States.
The world’s largest digital currency reached a record peak of $122,571.19 before easing slightly to trade at $121,952.61, still up 2.4% on the day.
The rally comes ahead of a crucial session in the US House of Representatives later today, where lawmakers are set to debate several bills aimed at providing long-awaited regulatory clarity for digital assets. The sector has long demanded a clear framework to facilitate growth and investment.
Former US President Donald Trump has also thrown his weight behind the crypto industry, declaring himself the “crypto president” and calling for policies that support digital assets.
“It’s riding multiple tailwinds at the moment,” said Tony Sycamore, market analyst at IG. “Strong institutional demand, expectations of further gains, and Trump’s vocal support are all fuelling the momentum.”
He added, “Bitcoin has posted an exceptionally strong move over the past week, and it’s hard to see where it stops for now. It looks very capable of testing the $125,000 level in the near term.”
Bitcoin’s rally – with the cryptocurrency now up 29% so far this year – has sparked broader gains across the digital asset market despite concerns over Trump’s proposed tariffs on various sectors.
Ether, the second-largest cryptocurrency, touched its highest level in more than five months at $3,059.60, while other major tokens like XRP and Solana rose around 3% each.
The combined market value of cryptocurrencies has now swelled to approximately $3.81 trillion, according to data from CoinMarketCap.
“What’s notable is the growing perception of bitcoin as a long-term reserve asset – not only among retail and institutional investors but increasingly among some central banks as well,” said Gracie Lin, CEO of OKX Singapore.
“We’re also observing greater participation from Asia-based investors, including family offices and wealth managers. These trends point to bitcoin’s strengthening role in the global financial system and suggest this isn’t merely another hype-driven rally.”
This week, dubbed “crypto week” in Washington, will see Congress vote on three key bills: the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. Of these, the Genius Act is considered the most significant, as it proposes a regulatory framework for stablecoins at the federal level.
Meanwhile, the bullish sentiment extended to crypto ETFs in Hong Kong, where spot bitcoin ETFs launched by China AMC, Harvest, and Bosera all hit record highs on Monday. The three ether ETFs managed by these firms also gained over 2% each.
