Bitcoin surged past the $120,000 mark for the first time on Monday, as institutional optimism swelled ahead of a pivotal week for crypto policy in the United States. The price peaked at $123,205 early in the day, according to market data, bolstered by strong inflows into crypto ETFs and growing confidence in a maturing regulatory framework.
The rally coincides with the start of what lawmakers are calling “Crypto Week” — a series of legislative discussions in the U.S. House of Representatives centered around digital assets. Among the key bills on the agenda are the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Genius Act, which aims to establish regulatory guardrails for U.S.-backed stablecoins.
Institutional Confidence Driving Momentum
Bitcoin’s rise comes after weeks of heightened interest from institutional investors. U.S.-based Bitcoin ETFs recorded net inflows of $2.7 billion last week alone — the fifth-highest since their launch. Open interest in Bitcoin futures also reached a record $86.3 billion, reflecting increased institutional positioning.
“”This change shows that people are becoming more mature about Bitcoin—not just as a speculative asset, but also as a macro hedge and a structurally scarce store of value,” said George Mandres, senior trader at XBTO Trading.
Jeff Mei, COO at crypto exchange BTSE, echoed the sentiment, suggesting Bitcoin could reach $125,000 in the coming weeks. “Despite ongoing geopolitical trade tensions under President Trump’s administration, institutional buyers appear committed and unshaken,” he noted.
Political Winds Favor Crypto
The recent bullish sentiment also reflects growing political support for the crypto industry. President Donald Trump, re-elected earlier this year, has publicly aligned himself with the digital asset space, referring to himself as the “crypto president.” His administration is pushing for pro-crypto legislation that could bring long-awaited regulatory clarity to the market.
Xu Han, Director at HashKey Capital, noted, “Long-term holders are locking up supply, while clearer global policy — especially in the U.S. — is boosting confidence and capital inflows.”
The Genius Act, in particular, is being closely watched. If passed, it would allow private companies to issue dollar-pegged digital currencies under federal oversight — a move seen as a significant step toward mainstream adoption.
Other Digital Assets Join the Rally
Bitcoin’s momentum has spilled over into the broader crypto market. Ether rose 2.4% on the day, touching a five-month high, while XRP and Solana posted similar gains. The total crypto market cap has now swelled to approximately $3.81 trillion, according to CoinMarketCap.
Gracie Lin, CEO of OKX Singapore, highlighted the changing perception of Bitcoin: “We’re seeing not just retail or institutional interest — even some central banks are beginning to view Bitcoin as a long-term reserve asset.”
What’s Next?
While some analysts caution that the rally could face short-term corrections, the prevailing sentiment remains bullish. “Bitcoin has cleared $120,000, but the real test lies at $125,000,” said Rachael Lucas, analyst at BTC Markets. “Any dip near $112,000 looks more like a buying opportunity than a reversal.”
Market watchers will be closely monitoring the outcomes of this week’s congressional sessions. A clear path forward on regulation could mark a turning point in how digital assets are integrated into the U.S. financial system.
