Bitcoin surged to a new record high on Monday, trading above US$120,000 as U.S. lawmakers consider regulatory changes that could boost institutional demand. The largest cryptocurrency by market capitalisation hit approximately US$119,800 around 4 p.m. ET, according to Coin Metrics data, after peaking above US$123,000 earlier in the day. The rally coincides with increased inflows into bitcoin ETFs, with Thursday seeing a record $1.18 billion inflow for the year.
The gains come as the U.S. House of Representatives begins debating several crypto bills, dubbed “Crypto Week,” aimed at establishing a clearer regulatory framework for the digital asset industry. This policy shift has been long-awaited and has the support of U.S. President Donald Trump, who has expressed pro-crypto sentiments and is involved in various crypto ventures. One of the key bills under review is the Genius Act, which could set federal guidelines for U.S. dollar-pegged stablecoins and create a path for private companies to issue digital currencies.
According to Jeff Mei, chief operating officer at cryptocurrency exchange BTSE, the surge is driven by long-term institutional buyers, potentially pushing Bitcoin to US$125,000 in the coming months. Markus Thielen, CEO of 10x Research, stated that corporate and institutional investors have invested US$15 billion in bitcoin ETFs in the last six to eight weeks. 10x Research has set a year-end bitcoin target between US$140,000 and US$160,000.
Xu Han, director of the Liquid Fund at HashKey Capital, noted that long-term holders are securing supply, while increased global policy clarity, especially concerning stablecoins and crypto legislation, has enhanced investor confidence and capital inflows. However, Thielen noted that a continued hawkish policy from the U.S. Federal Reserve, with further interest rate hikes due to tariffs, remains a significant risk.
