Record-Breaking Momentum for Bitcoin
Bitcoin broke past the $120,000 mark for the first time, signaling renewed investor enthusiasm as the US House of Representatives launches “Crypto Week.” The cryptocurrency surged to as high as $123,205 before settling around $121,600, gaining 3.4% in early Monday trading in New York. Ether and other major altcoins, including XRP and Uniswap, also posted gains.
This upward trajectory comes after months of price consolidation near $100,000, following the re-election of Donald Trump. Market sentiment had been restrained due to concerns around his trade policies, but renewed interest in risk assets and expected crypto-friendly legislation have reenergized the market.
Legislative Push Adds Fuel to the Rally
Crypto Week marks a crucial legislative moment for the industry. The House is preparing to debate three key bills: the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS stablecoin framework, which has already cleared the Senate. These measures are seen as steps toward providing long-needed regulatory clarity in the US.
The GENIUS Act is expected to impose clear guidelines on stablecoin issuers, ensuring they are backed by assets like the US dollar and regulated at both state and federal levels. The broader legislative package signals a coordinated effort by the Trump administration and Republican lawmakers to promote the domestic crypto economy.
Bitcoin’s Role as a Macro Hedge Strengthens
Institutional investors are responding positively. Open interest in Bitcoin futures hit a record high of $86.3 billion, while ETFs saw over $2.7 billion in net inflows last week alone. Combined, the twelve active US-based Bitcoin ETFs now manage more than $151 billion in assets.
According to George Mandres, senior trader at XBTO Trading LLC, this surge reflects a deeper transformation: “This shift signals a maturing perspective on Bitcoin — not merely a speculative asset, but a macro hedge and a structurally scarce store of value.”
Broader Crypto Market Benefits
Bitcoin’s rally has boosted the broader crypto market. Ethereum surpassed $3,000, Chainlink and Solana posted strong gains, and investor sentiment remains positive across the board. Liquidations of short positions over the weekend further fueled the rally, with over $1 billion in bearish bets wiped out.
Crypto analyst Rachael Lucas from BTC Markets emphasized that although some profit-taking is expected near $125,000, the underlying trend remains bullish. “Support at $112,000 looks firm, and any pullbacks should be seen as buying opportunities,” she said.
Corporate and Treasury Moves Reinforce Demand
Michael Saylor’s MicroStrategy continues to lead institutional adoption, with the total value of its Bitcoin holdings now exceeding $73 billion. The firm has resumed aggressive accumulation, taking advantage of Bitcoin’s upward momentum.
While the majority of analysts are optimistic, not all are convinced of the rally’s durability. Nicolai Sondergaard of Nansen noted, “In my view, this isn’t a macro-driven rally, but rather an isolated event.” Still, he acknowledged that US fiscal expansion and potential monetary easing have created favorable conditions for crypto assets.
Crypto Week Sets the Stage
With US lawmakers debating comprehensive crypto regulations and institutions increasing exposure to digital assets, Bitcoin’s ascent past $120,000 may only be the beginning. Crypto Week is not just a legislative showcase—it’s a turning point in the global digital asset narrative, where regulatory clarity and market maturity may finally converge to push the space into a new era.
