Bitcoin, the world’s largest cryptocurrency by market capitalization, reached a new all-time high on Monday, breaking past the $120,000 mark and hitting $122,600 as of 1:27 p.m. Singapore time, according to Coin Metrics. This milestone caps off a rally fueled by significant institutional inflows into Bitcoin exchange-traded funds (ETFs) and optimism surrounding U.S. lawmakers’ push for clearer cryptocurrency regulations.
Institutional Inflows Drive the Rally
Bitcoin’s recent surge has been driven largely by institutional investors. On Thursday alone, Bitcoin ETFs recorded their highest inflows of 2025, totaling $1.18 billion. Jeff Mei, COO of cryptocurrency exchange BTSE, attributed the rally to long-term institutional buyers. He predicted that Bitcoin could climb even further, potentially reaching $125,000 in the next month or two, despite short-term risks like trade disputes involving the U.S. and its trading partners.
“Long-term holders are locking up supply, while global policy clarity — especially around stablecoins and crypto legislation — has boosted investor confidence and capital inflows,” said Xu Han, director of the Liquid Fund at HashKey Capital.
Over the past six to eight weeks, corporate and institutional investors have purchased $15 billion worth of Bitcoin ETFs, according to Markus Thielen, CEO of 10x Research. However, retail investors appear to have largely stayed on the sidelines during this rally.
‘Crypto Week’ and Regulatory Clarity
The rally coincides with a pivotal week in U.S. cryptocurrency policy. Dubbed “Crypto Week,” the U.S. House of Representatives is set to deliberate on a series of bills aimed at creating a clearer regulatory framework for the crypto industry. One of the most anticipated pieces of legislation is the Genius Act, which could establish federal guidelines for stablecoins and pave the way for private companies to issue digital dollars.
The proposed laws have received bipartisan support and backing from U.S. President Donald Trump, who has branded himself as a pro-crypto leader and is actively involved in several cryptocurrency ventures. This regulatory clarity has further fueled investor confidence, with many seeing it as a turning point for the industry.
Market Outlook and Risks
The bullish sentiment is reflected in 10x Research’s year-end Bitcoin target range of $140,000 to $160,000. However, potential risks remain. Thielen warned that the U.S. Federal Reserve’s hawkish monetary policy, including further interest rate hikes, could dampen the momentum. Tariff-related uncertainties stemming from Trump’s trade disputes with the EU, Mexico, and other trading partners may also create volatility in the near term.
Despite these risks, many analysts believe Bitcoin’s long-term trajectory remains positive due to increasing institutional adoption and the growing integration of cryptocurrency into global financial systems.
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
↔ 
→ 
→ 
→ 
→ 
→ 
→ 
→ 
