Bitcoin reached a record high of over $122,000 on Monday, driven by optimism surrounding increasing institutional adoption and in anticipation of a highly awaited “Crypto Week” in Washington, starting later in the day.
The world’s largest cryptocurrency last traded up 2.7 percent at $120,778.8 as of 23:48 ET (03:48 GMT). The world’s largest cryptocurrency is now trading near $122,056.
Bitcoin’s latest gains followed a statement from Japanese hotelier turned Bitcoin treasurer Metaplanet, which announced the acquisition of an additional 797 Bitcoin, bringing its total holdings to 16,352 coins. The firm is now the fifth-largest corporate holder of Bitcoin.
Bitcoin has been on a remarkable upward trend over the past week, fueled by strong ETF inflows and heightened hopes for more crypto-friendly regulation in the United States. Investor sentiment has been buoyed by expectations that the U.S. House of Representatives will debate several landmark crypto bills during “Crypto Week,” including the Genius Act, Clarity Act, and the Anti‑CBDC Surveillance State Act.
The global cryptocurrency market cap has now reached $3.82 trillion. The world’s largest cryptocurrency rose 3.3 percent past $118,000 marking a 26 percent gain for the year.
Josh Gilbert, market analyst at eToro, remarked to Economy Middle East, “Bitcoin has surged past $120,000 for the first time, marking yet another record in what’s shaping up to be a monumental rise. Strong ETF inflows and a solid macro backdrop have helped drive market momentum and that momentum keeps driving new all-time highs. The pace of gains in recent weeks reflects not just growing demand, but the growing maturity of bitcoin as an asset class.”
“What we’re seeing now is sustained interest, supported by structural inflows, rather than short-term speculation. That matches the most crucial shift, which is who’s buying. Institutional adoption is growing, and this is the first real bull market where institutional participation is front and centre.”
Record inflows into U.S. spot Bitcoin ETFs
If passed, these measures could create comprehensive regulatory frameworks governing stablecoins, crypto asset custody, and the broader digital financial ecosystem. Enhancing the bullish sentiment, institutional demand remains strong. U.S. spot Bitcoin ETFs have experienced record-breaking inflows, and major asset managers like BlackRock and Fidelity are expanding their crypto holdings.
Crypto-related equities mirrored Bitcoin’s rise, with U.S.-listed miners and ETF-linked stocks such as Riot Platforms, Mara Holdings, and Strategy showing significant gains last week. The surge was also attributed to a major Chinese regulator convening a strategic session last week to brief local officials on stablecoin and digital currency policy. The Thursday meeting, organized by Shanghai’s state asset regulator, hinted at a possible shift in China’s stance, where crypto trading is currently banned.
The Bitcoin price surged last Friday, breaking through previous resistance levels to set a new yearly high, igniting optimism throughout the crypto market. This new peak follows a rally that has seen BTC reach a 52-week high of $118,441.47, nearly doubling its yearly low of $49,121.24.
Read more | Bitcoin surges past $118,000: What’s fueling the crypto market’s optimism?
Macro environment favors risk assets and crypto
Many investors are curious about why Bitcoin is increasing at this moment. One significant factor is the renewed interest from institutional investors. Large funds and corporations are once again adding BTC to their balance sheets, viewing it as a hedge against economic uncertainty and a long-term store of value.
Furthermore, the global macroeconomic environment favors risk assets. Recent signals from central banks, including the Federal Reserve’s cautious stance on future rate hikes, have created a more optimistic market, driving capital into crypto. Therefore, investors wondering why crypto is up today need look no further: easy monetary conditions, stronger demand, and positive sentiment are fueling this rally.
Bitcoin reached a new all-time high on Thursday and continues to test the $112,000 resistance level today, indicating the potential for a major breakout. According to Simon Peters, crypto analyst at eToro, the long-term outlook remains bullish as multiple factors continue to support the upward trend. “Ultimately, the price should continue to climb over the long term,” Simon Peters, crypto analyst at eToro, told Economy Middle East.
Bitcoin as hedge against monetary debasement
“Bitcoin is behaving in line with the widely held narrative — as a hedge against monetary debasement — especially as central banks maintain expansive monetary policies, government borrowing continues, and global money supply rises.”
The increasing demand for Bitcoin, particularly from institutional investors, is further propelling its price momentum. Public and private companies, institutional funds, and ETFs now hold approximately 3.5 million BTC, representing around 17 percent of the total fixed supply of 21 million — a notable rise from 2.6 million BTC just one year ago. Additionally, the crypto sector is gaining stronger political and regulatory support. The U.S. is entering what’s being referred to as ‘Crypto Week,’ during which the House of Representatives is expected to discuss three landmark pieces of legislation. If passed, these bills would further legitimize the industry and lay a stronger foundation for future growth.
Projected Bitcoin price targets for year-end
Despite the positive outlook, Peters advises caution. “While optimism is high, the potential for short-term pullbacks remains. Investors should assess their time horizon and risk tolerance before entering the market,” he said. “A strategy like dollar-cost averaging — investing a fixed amount regularly — may help reduce timing risk and lower the average cost of investment over time.”
Global bank Standard Chartered maintains a bullish stance on Bitcoin for the remainder of the year, attributing this optimism to rising corporate treasury purchases and robust inflows into exchange-traded funds (ETFs). The bank projects that Bitcoin could reach new heights of $135,000 by the end of the third quarter, potentially surpassing $200,000 by year-end, according to Geoff Kendrick, head of digital asset research at Standard Chartered.
In his latest analysis, Kendrick highlighted the significance of the Bitcoin halving cycle, a price trend linked to BTC halving events that occur approximately every four years. However, Standard Chartered acknowledges the possibility of some price volatility in late Q3 and early Q4, given concerns regarding correction patterns observed in previous halvings. Additionally, data from SoSoValue indicates that U.S. spot Bitcoin ETFs experienced outflows of $342.3 million last Tuesday, marking the first outflow since June 6. These outflows represented 7 percent of the total $4.8 billion inflows recorded over the past 15 days.
Central banks fuel demand for fixed supply assets
“Publicly traded companies are now adopting bitcoin as part of their treasury strategy, with some making multi-billion-dollar allocations. At the same time, retirement funds and sovereign wealth funds are starting to gain exposure through ETFs, adding to the wave of demand chasing a fixed supply,” noted Gilbert.
“Central banks keep running expansive monetary policies and global money supply keeps rising. In that environment, an asset with fixed, decentralised supply cements itself as an alternative store of value.”
“Importantly, retail adoption is still only getting started. Bitcoin as an asset in an investment portfolio is still in its infancy, and that in itself creates a huge opportunity for bitcoin and crypto to flourish over the next decade. This is just the beginning of widespread adoption, seamless integration with traditional finance, and robust regulatory frameworks,” the eToro analyst highlighted.
“As performance continues, trust builds and adoption grows bitcoin is fast becoming a ‘must have’ in an investment portfolio with its strong risk-adjusted returns. Looking ahead, continued institutional allocation feels inevitable, especially with an improving regulatory environment and that will serve as a tailwind for bitcoin through the rest of 2025.”
