Bitcoin shattered history on Monday by crossing the $120,000 barrier for the first time, hitting an all-time high of $122,571.19 before retreating a little to trade 2.4% higher at $121,952.61.
The rally is a testament to increasing investor optimism as central policy debates about regulating cryptocurrency are given top billing in Washington this week.
Later today, the U.S. House of Representatives will consider various legislative bills that seek to institute a regulatory environment for the digital asset sector—an industry that has been clamoring for clarity and government support. These initiatives have gained a strong supporter in U.S. President Donald Trump, who has openly welcomed the industry, referring to himself as the "crypto president" and advocating for beneficial regulatory changes.
It's riding a few tailwinds at the moment," said Tony Sycamore, an IG market analyst. He identified as key drivers higher institutional demand, bullish price action, and Trump's vocal encouragement. "It's been a very, very strong move for the last six or seven days and it's difficult to see where it finishes now. It appears it can quite easily have a glance at the $125,000 level," he continued.
Bitcoin has climbed 29% so far in 2025, lifting the entire cryptocurrency market along with it. Ether, the second-largest digital asset, surged to $3,059.60—its highest level in over five months—while XRP and Solana saw gains of around 3% each.
According to CoinMarketCap, the total valuation of the cryptocurrency market has now ballooned to approximately $3.81 trillion.
OKX Singapore CEO Gracie Lin observed a significant change in the way bitcoin is being viewed internationally. "What we see as interesting and observing closely are the indications that bitcoin is increasingly being treated as a long-term reserve asset, not by retail investors and institutions, but even by some central banks," she stated. Lin also noticed higher involvement from Asian markets such as family offices and wealth managers, terming it a reflection of bitcoin's integration into the broader financial system. "This indicates that this is not just another hype rally."
Earlier this month, Washington labeled the week of July 14 as "crypto week" when lawmakers are scheduled to vote on important pieces of legislation including the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. Of these, the Genius Act is notable for offering far-reaching federal guidelines for stablecoins.
At the same time, excitement around crypto assets also spilled over into Asia's financial markets. In Hong Kong, spot bitcoin exchange-traded funds (ETFs) from China AMC (3042.HK), Harvest (3439.HK), and Bosera (3008.HK) all hit records. Three ether-based ETFs—the same fund houses—increased over 2% each.
As the market remains overwhelmingly optimistic regarding potential regulatory breakthroughs and institutional investment, bitcoin's recent rally suggests growing faith in the asset class's long-term sustainability and international importance.
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