Bitcoin has once again surged into uncharted territory, smashing through the $120,000 level for the first time on Monday. This major milestone for the world’s largest cryptocurrency comes as investors bet on a series of long-sought policy victories for the digital asset industry, with the US House of Representatives set to debate crucial regulatory legislation this week. Expectations of a more favorable regulatory environment in the US helped propel Bitcoin to yet another record high, reaching $121,207.55 during the Asian trading session on Monday. It was last seen trading 1.5% higher at $120,856.34. This surge marks an impressive 29% gain for Bitcoin year-to-date and has sparked a broader rally across the cryptocurrency market over the past few weeks, seemingly undeterred by the chaos of President Donald Trump’s global tariff policies. The optimism was not confined to Bitcoin. Ether (ETH), the second-largest token by market value, scaled an over five-month peak of $3,048.23 on Monday, last standing at $3,036.24. The sector’s total market value has now swelled to approximately $3.78 trillion, according to data from CoinMarketCap, reflecting a significant influx of capital and renewed investor confidence. The Washington effect: regulation and a ‘crypto president’ A key driver behind the current bullish sentiment is the legislative action taking place in Washington DC. Starting this week, the US House of Representatives will begin debating a series of bills designed to provide the digital asset industry with the comprehensive national regulatory framework it has long demanded. These legislative efforts have found a powerful ally in US President Donald Trump, who has styled himself as the “crypto president” and has urged policymakers to revamp existing rules in favor of the industry’s growth and innovation. While Bitcoin’s inherent volatility makes predicting its next price move effectively impossible, several factors could contribute to it reaching even greater heights in the second half of the year: A favorable regulatory shift: The Trump administration has, so far, been beneficial for the cryptocurrency market. President Trump’s appointee for Securities and Exchange Commission (SEC) Chair, Paul Atkins, has stated that the SEC should prioritize advancing innovation in the marketplace. Under his leadership, the SEC has notably dropped multiple crypto-related lawsuits, including high-profile cases against Coinbase, Binance, and Ripple, the company behind the XRP token. The US strategic Bitcoin reserve: In a significant move that validated Bitcoin at a national level, President Trump signed an executive order in March 2025 to begin the U.S. Strategic Bitcoin Reserve, a formal stockpile of the Bitcoin owned by the US government. Following this federal lead, states like Arizona and New Hampshire have also passed legislation to create their own state-level Bitcoin reserves. The GENIUS Act for stablecoins: Later this year, we could see the final passage of the GENIUS Act, a bill specifically designed to regulate the stablecoin industry. The U.S. Senate passed its version of the bill on June 17, and a House vote is next on the agenda. Although the GENIUS Act doesn’t directly involve Bitcoin, any major, well-defined crypto regulation is widely seen as helping the industry gain legitimacy and attract a new wave of investors. The power of ETFs: unlocking mainstream capital Another critical factor fueling Bitcoin’s ascent is the continued success of spot Bitcoin exchange-traded funds (ETFs). The first of these products received SEC approval in January 2024, a landmark decision that made Bitcoin significantly more accessible to both institutional and retail investors through traditional brokerage accounts. Since a surge in investments began in April, these Bitcoin ETFs have seen remarkable growth. As of July 10, they had crossed the $50 billion mark in net inflows, according to data from Farside Investors. While these inflows and outflows can fluctuate, Bitcoin’s excellent performance this year is expected to help it continue to draw strong interest from investors looking for exposure to the asset class. Underscoring this optimism, British bank Standard Chartered has predicted that Bitcoin will reach a price of $200,000 by the end of the year, and that continued ETF inflows will be a significant driver of this growth. The post Bitcoin shatters $120K in historic rally as US prepares landmark crypto legislation appeared first on Invezz
