Bitcoin has surged to a new all-time high, breaking above $123,000 on Monday amid growing enthusiasm from institutional investors and fresh momentum from U.S. policy developments. By midday, the leading cryptocurrency was trading at just under $120,000, extending a rally that has captured the attention of global markets.
The recent price spike has been driven largely by massive inflows into Bitcoin exchange-traded funds (ETFs), with last Thursday marking a record day in 2025—drawing in $1.18 billion. Analysts attribute the rally to long-term buying by institutional investors, who appear confident in Bitcoin’s upward trajectory despite geopolitical uncertainties. Jeff Mei, COO of crypto exchange BTSE, noted that while trade tensions involving the U.S., EU, and Mexico might trigger short-term volatility, institutional players are holding firm, anticipating further growth toward $125,000 in the coming months.
The crypto market rally coincides with the start of what lawmakers in Washington are calling “Crypto Week,” a legislative push aimed at establishing clearer regulatory guidelines for the digital asset sector. Among the bills under review is the Genius Act, a proposed law that would create federal standards for stablecoins and open the door for private firms to issue digital dollars. The legislation, which has strong backing from President Donald Trump, marks a significant step in defining the future of U.S. crypto policy.
Xu Han, director at HashKey Capital, emphasized that long-term holders are reducing available supply, while increasing regulatory clarity—especially on stablecoins—is fueling investor confidence. Meanwhile, Markus Thielen, CEO of 10x Research, revealed that institutional investors have poured $15 billion into Bitcoin ETFs over the last two months, while retail investors have largely stayed on the sidelines. His firm projects Bitcoin could reach $140,000 to $160,000 by year-end, though he warns that aggressive interest rate hikes by the Federal Reserve—possibly tied to inflationary pressures from global tariffs—remain a key downside risk.
With institutions leading the charge and U.S. lawmakers signaling a more crypto-friendly stance, Bitcoin’s record-breaking climb reflects growing mainstream acceptance and the strengthening of its position as a major financial asset.
