Bitcoin Reaches New All-Time High Amid US Crypto Policy Developments
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Bitcoin surged past $123,000 for the first time ever on Monday, marking a significant milestone in the crypto market’s history. This rally coincides with a series of legislative events in the United States, where the House of Representatives launched what it’s calling “Crypto Week” — a coordinated initiative to debate key cryptocurrency-related bills. One major focus is the Senate-approved GENIUS Act, designed to bring stablecoin regulation under clearer frameworks. The anticipation surrounding regulatory clarity has reignited interest from institutional investors, leading to increased demand across spot and derivatives markets.
Market analysts attribute the price momentum to several key factors. Firstly, a weakening US dollar has made digital assets more attractive as a store of value. Secondly, large financial institutions like BlackRock and Fidelity have continued to accumulate Bitcoin through ETFs, while hedge funds remain net long across most major crypto assets. Ethereum also rose above $3,000, and altcoins like Solana and Chainlink posted double-digit weekly gains.
The total market capitalization of crypto assets climbed to $3.8 trillion, approaching its historic high from late 2021. While many crypto bulls are celebrating, some voices remain cautious, warning that the rally could be overheated in the short term. Nevertheless, technical indicators suggest strong upside momentum. Resistance levels above $125,000 could be tested in the coming sessions, and a successful breakout could drive BTC toward the $130,000 region.
The optimism has also spilled over into equities. Shares of Coinbase and MicroStrategy gained as much as 7% during intraday trading, while crypto-focused ETFs saw strong inflows. This broader enthusiasm marks a turning point in the perception of digital assets, with regulatory developments now serving as catalysts rather than hurdles.
The combination of strong macro trends, improving institutional access, and renewed political attention has placed crypto back into the global spotlight. As the US government edges closer to enacting meaningful legislation, traders and investors are closely watching how these changes might shape the next wave of innovation in the crypto economy.
