Bitcoin, the world’s largest cryptocurrency, broke through the $120,000 threshold on Monday, reaching a new all-time high as investor sentiment strengthened ahead of crucial cryptocurrency legislation in the United States and institutional demand for Bitcoin exchange-traded funds (ETFs) continued to accelerate.
The digital asset climbed as much as 3.4 per cent to $123,205 as of 9:10 a.m. in Nigeria, fueled by renewed market confidence and substantial inflows into spot Bitcoin ETFs. Major altcoins, including Ether, XRP, and Solana, also recorded gains, even as equity markets across Europe experienced pullbacks.
This rally follows several months of price consolidation around the $100,000 mark. Bitcoin had doubled in value in 2024 following Donald Trump’s re-election, though initial concerns over his trade and fiscal policies had subsequently slowed its bullish momentum. However, investor attention has now decisively shifted towards regulatory clarity and the expanding institutional adoption of digital assets.
“The move above $120,000 signals institutional conviction. Bitcoin is now viewed not just as a speculative asset, but as a structurally scarce store of value and macro hedge,” ,” commented George Mandres, senior trader at XBTO Trading LLC.
ETF inflows played a central role in Monday’s breakout. Data from Bloomberg indicates that U.S.-listed Bitcoin ETFs recorded net inflows of $2.7 billion last week, marking the fifth-highest weekly total since their January 2024 launch. These 12 approved ETFs collectively manage approximately $151 billion in assets under management.
The derivatives market also reflected this bullish sentiment, with open interest in Bitcoin futures hitting a record high of $86.3 billion, according to Coinglass. The upward pressure on price was further intensified by short sellers being forced to liquidate over $1 billion in bearish positions.
The policy environment in the U.S. is additionally strengthening sentiment. The House of Representatives commenced Crypto Week (Monday), with scheduled debates on several legislative proposals. These include the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate’s GENIUS stablecoin framework. Should these bills pass, they are expected to provide much-awaited legal certainty to digital asset markets. Republican lawmakers, aligning with Trump’s pro-crypto stance, are actively pushing for policies that institutionalise favourable regulations, including clear rules for stablecoins and limitations on central bank digital currency development.
“The market sees progress on legislation as a major de-risking event. With ETFs providing consistent demand and policy risk decreasing, dips are being viewed as buying opportunities,” stated Rachael Lucas, a crypto analyst at BTC Markets. Lucas noted that while Bitcoin’s short-term resistance stands at $125,000, strong support is now established at $112,000. “The uptrend has fuel, and the ETF flows are real,” she added.
The broader cryptocurrency market has also benefited from Bitcoin’s momentum. Ether rose by 2.4 per cent, while Solana and XRP each advanced by over two per cent. Analysts anticipate an increase in capital rotation into altcoins if Bitcoin stabilizes above the $120,000 level.
Despite the prevailing optimism, some analysts retain a cautious perspective. “This isn’t purely a macro-driven rally. It’s largely isolated to crypto, but supported by fiscal expansion and potential monetary easing in the U.S,” said Nicolai Sondergaard, a research analyst at Nansen.
Bitcoin is now up over 31 per cent year-to-date, adding to its more than 100 per cent gain in 2024. These recent gains reinforce growing acceptance among institutional investors, even as volatility and residual policy risks remain.
With a favourable policy backdrop, consistent ETF demand, and renewed market momentum, Bitcoin’s breakthrough above $120,000 marks a major milestone for the digital asset industry. According to analysts, all eyes will now be on the outcome of this week’s U.S. congressional debates and Bitcoin’s attempt to clear the next psychological barrier at $125,000.
