Bitcoin surged past the $120,000 mark for the first time on Monday, hitting a historic high of $121,207.55 during Asian trading hours, as investor optimism soared ahead of a pivotal week for cryptocurrency regulation in the United States.
The world’s largest digital currency later settled slightly lower but remained up 1.6% on the day at $121,015.42, continuing a strong rally that has seen it gain 29% since the start of the year.
Investor enthusiasm has been fuelled by growing anticipation over a series of bills being debated in the US House of Representatives this week, aimed at establishing a long-awaited regulatory framework for the digital asset industry.
The week of July 14 has been declared “Crypto Week” in Washington, with lawmakers expected to vote on several significant proposals, including the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. Among them, the Genius Act stands out for its potential to introduce federal oversight and stability rules for stablecoins.
The momentum has been further bolstered by vocal support from US President Donald Trump, who has embraced the title of “crypto president” and called for revamped regulatory policies that favour innovation in the digital asset sector.
“It’s riding a number of tailwinds at the moment,” said Tony Sycamore, market analyst at IG. “Strong institutional demand, support from Trump, and momentum in the market are driving the bullishness. It’s been a very strong move over the past week, and it looks like it could easily test the $125,000 level.”
Bitcoin’s surge has lifted the broader cryptocurrency market as well. Ether, the second-largest cryptocurrency, climbed to a five-month high of $3,050.90. Other major altcoins such as XRP and Solana also rose approximately 3% each, contributing to the total crypto market capitalisation reaching around $3.78 trillion, according to CoinMarketCap data.
The rally extended beyond US markets. In Hong Kong, crypto-related exchange-traded funds (ETFs) also posted record gains. Spot bitcoin ETFs launched by China AMC, Harvest, and Bosera all hit all-time highs, while ether ETFs managed by the same asset managers rose about 2% each.
Despite geopolitical tensions and economic uncertainties, including President Trump’s controversial tariff policies, digital assets appear to be thriving, buoyed by policy optimism and growing institutional interest.
As US lawmakers debate the future of crypto oversight, all eyes remain on Washington this week, with investors hoping regulatory clarity will unlock further growth for the fast-evolving digital asset industry.
