Bitcoin has climbed past the $120,000 mark for the first time, Bloomberg reported Monday, as investor enthusiasm builds on the back of political, macroeconomic, and institutional factors. The flagship cryptocurrency, which had been hovering near $100,000 following Donald Trump's re-election, has re-entered bullish territory with renewed strength.

The rally, marking a 30% gain since December and reaching as high as $121,344, comes as traditional risk assets like stocks also hit record highs. Analysts attribute the shift in sentiment to growing optimism about Trump's pro-crypto stance, paired with increased institutional inflows into spot Bitcoin and Ethereum ETFs.

George Mandres, senior trader at XBTO Trading LLC, described the movement as evidence of Bitcoin's evolving role from a speculative asset to a "macro hedge and structurally scarce store of value."

Supporting the surge was the liquidation of more than $1 billion in short positions, as bearish traders were caught off guard by Bitcoin's upward break. According to Coinglass data, the squeeze added fuel to an already accelerating climb.

Related News

Trump to host inaugural crypto summit at the White House

The rally is further bolstered by anticipation surrounding "Crypto Week" in Washington, during which US lawmakers are expected to debate and potentially vote on major legislation. Among the bills under discussion are the GENIUS Act (governing stablecoins), the CLARITY Act (defining regulatory oversight), and the Anti-CBDC Surveillance Act. Together, these legislative efforts aim to provide long-awaited regulatory clarity that could solidify Bitcoin's institutional legitimacy.

Cautious surge

This alignment of favorable political conditions, regulatory momentum, and institutional demand has significantly reduced the extreme volatility seen in past crypto bull markets, according to Bloomberg.

Analysts note that the current cycle is being driven less by retail euphoria and more by large-scale adoption and macro positioning. However, not all observers are convinced of the rally's staying power.

"In my view, this isn't a macro-driven rally, but rather an isolated event," said Nicolai Sondergaard, a research analyst at Nansen. Still, he acknowledged that recent US policy signals, including fiscal expansion and anticipated monetary easing, have created an undeniably supportive environment for Bitcoin.

As Bitcoin reclaims the global spotlight, market participants will be closely watching the outcome of US legislative action and macroeconomic indicators to gauge whether this surge can be sustained or if it marks another temporary peak in crypto's turbulent history.

Read more: Bitcoin tops $105,000 before slipping back in volatile 2025 trading