Bitcoin breaks $120,000 barrier as US launches ‘Crypto Week’

Bitcoin has surged to historic new heights, smashing through the $120,000 level for the first time ever, as traders across the world bet big on looming policy changes out of Washington. According to Reuters, Bitcoin touched a record of $122,571 on Monday before trading slightly below that peak. The move capped weeks of mounting optimism among investors who see the US finally moving to deliver clear regulatory rules for digital assets.

Market watchers say the breakout isn’t just technical hype, but the result of a confluence of bullish drivers, from President Donald Trump’s vocal embrace of crypto to heavy institutional buying and growing demand from Asia.

Betting on US clarity: Crypto Week begins

Much of the enthusiasm centres on what’s happening this week in Washington. The US House of Representatives has declared it “Crypto Week”—a high-profile push to debate and potentially pass legislation that could define the future of the industry. According to Reuters, the legislative calendar includes several bills that crypto advocates have been lobbying for over years. Among the most anticipated is the so-called Genius Act, which would finally establish federal rules for stablecoins, a key requirement for integrating crypto with the traditional financial system.

Other proposals on the table include the Clarity Act, aiming to set clearer guardrails for how tokens are classified, and the Anti-CBDC Surveillance State Act, which seeks to limit government overreach via central bank digital currencies. Bloomberg reports that crypto industry leaders see the week as a make-or-break moment: either US lawmakers deliver the regulatory certainty the sector craves, or risk seeing innovation move offshore.

Trump’s role in the rally

Bitcoin’s rally has also been powered by President Trump’s unexpected embrace of the sector. Having once called crypto a threat, Trump now brands himself the “crypto president” and has been urging Congress to deliver the legal framework the industry wants.

Reuters quotes IG market analyst Tony Sycamore as saying Trump’s pro-crypto pivot is one of the “tailwinds” pushing Bitcoin higher, alongside strong institutional demand and positive momentum across global markets. “It’s been a very strong move over the past week,” Sycamore noted. “It’s hard to see where it stops now.”

Meanwhile, Bloomberg highlights that Bitcoin’s resurgence coincides with a broader “risk-on” mood, with stocks also hitting record highs. This environment has helped Bitcoin reassert itself as not just a speculative punt but a potential hedge against broader economic uncertainty.

Not just Bitcoin: crypto market booms

The bullish sentiment isn’t limited to Bitcoin. Reuters reports that Ether, the world’s second-largest cryptocurrency, has climbed to over $3,050, its highest in more than five months. Other tokens like XRP and Solana also saw gains of around 3 per cent each. The entire crypto sector’s market value has swollen to roughly $3.81 trillion, according to CoinMarketCap data.

In Asia, demand is also booming. Bloomberg reports that spot Bitcoin ETFs in Hong Kong, launched by China AMC and Bosera, hit record highs on Monday. Meanwhile, Ether ETFs in the city jumped more than 2 per cent, highlighting the global reach of this rally.

A shift in perception

What’s striking to many analysts is how Bitcoin’s image is evolving. Once dismissed as purely speculative, it is increasingly seen as a legitimate store of value, even by some institutional and sovereign players. As OKX’s Singapore CEO Gracie Lin told Reuters, “We’re seeing increasing participation from Asia-based family offices and wealth managers.” She added that this reflects a “structural shift” in how Bitcoin is perceived globally.

Bloomberg also quotes George Mandres of XBTO Trading describing the move as a sign of Bitcoin’s maturation into a “macro hedge and a structurally scarce store of value,” boosted by significant flows into spot Bitcoin and Ethereum ETFs.

Is this sustainable?

Not everyone is convinced this rally is built to last. Bloomberg notes that some analysts see it as an “isolated event,” driven more by short-term positioning than deep fundamental changes. Yet even sceptics acknowledge that the combination of Trump’s backing, US policy momentum, and rising demand from Asia could sustain prices at elevated levels, at least for now.

For Bitcoin, breaking $120,000 is undeniably a landmark. But as Crypto Week unfolds in Washington, the real test will be whether lawmakers can finally deliver the clear, investor-friendly framework that the industry says it needs to keep growing.