Bitcoin broke through the $120,000 barrier for the first time on Monday, reaching a new all-time high of $122,600 at 1:27 PM Singapore time, according to data from Coin Metrics.
Record inflows into Bitcoin exchange-traded funds (ETFs) and rising optimism about impending US legislation that will provide regulatory clarity for the cryptocurrency industry are driving the rally.
The milestone falls during what US lawmakers are referring to as “Crypto Week,” when a number of bills that could influence the nation’s digital assets are set to be debated by Congress. These include the Anti-CBDC Surveillance State Act, which would forbid the Federal Reserve from issuing a central bank digital currency, the Genius Act, which would permit private companies to issue stablecoins, and the Digital Asset Market Clarity Act.
The backing of US President Donald Trump, who has positioned himself as a “pro-crypto president” and is actively involved in the digital asset market, has further improved investor sentiment. Trump’s administration has backed efforts to build a clearer regulatory framework for crypto assets, an issue long sought by industry stakeholders.
Bitcoin ETFs saw inflows of $1.18 billion last Thursday — the largest single-day total so far in 2025 — driven by growing interest from institutional investors. Analysts believe this wave of buying is a key force behind Bitcoin’s latest upward momentum.
“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. “Institutional inflows and global policy progress are aligning in a way we’ve never quite seen before.”
Xu Han, director of the Liquid Fund at HashKey Capital, echoed this sentiment, noting that “long-term holders are locking up supply, while global policy clarity — especially around stablecoins and crypto legislation — has boosted investor confidence and capital inflows.”
Despite some headwinds — including market volatility driven by US trade policy under President Trump and the possibility of further interest rate hikes from the Federal Reserve — many analysts remain bullish. Jeff Mei, COO of crypto exchange BTSE, predicts Bitcoin could reach $125,000 in the coming months.
Other cryptocurrencies have also benefited from the rally. The market capitalization of digital assets is currently estimated at $3.78 trillion, according to CoinMarketCap, with ether, the second-largest digital asset, reaching a five-month high above $3,048 on Monday.
Reutes, CNBC, Bloomberg, the Financial Times contributed to this report.
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