Bitcoin Hits $120K Ahead of U.S. Crypto Legislation Week
Bitcoin extended its upward trajectory on Monday, breaking through the $120,000 mark for the first time. By 6:20 a.m. ET, it had reached $121,921, according to Coin Metrics, with earlier trades briefly topping $122,000. This surge was largely fueled by increased inflows into bitcoin exchange-traded funds (ETFs), signaling rising interest from institutional investors. Notably, last Thursday marked the biggest ETF inflow day of 2025, reaching $1.18 billion.
Although short-term market volatility may arise due to geopolitical developments and trade disputes, investor confidence in bitcoin’s long-term growth remains strong. The increased participation of institutional players has helped solidify bitcoin’s current rally, reinforcing expectations of continued appreciation in the coming months.
Policy Developments Strengthen Market Sentiment
This week, attention has shifted to Washington, where the U.S. House of Representatives is expected to begin deliberating on a series of cryptocurrency-related bills. Dubbed “Crypto Week,” the legislative agenda is designed to bring greater regulatory clarity to the digital asset industry. Investors are watching closely, as these discussions could shape the future of the crypto landscape.
Among the proposed measures, the Genius Act stands out. It aims to regulate U.S. dollar-pegged stablecoins and create legal pathways for private firms to issue digital dollars. This policy direction has long been awaited by market participants, and its progress could significantly bolster institutional engagement. The broader move toward crypto-friendly regulation has also been linked to increased capital inflows into digital assets.
Institutions Lead While Retail Investors Hold Back
Over the past two months, corporate treasuries and institutional investors have been accelerating their bitcoin purchases, especially through ETFs. In fact, more than $15 billion has flowed into these products within a six- to eight-week span. However, retail investors have largely remained cautious during this phase of the rally.
Forecasts for the year-end place bitcoin within a range of $140,000 to $160,000, assuming current momentum continues. Nonetheless, the biggest challenge to this outlook remains the potential for further interest rate hikes by the U.S. Federal Reserve. Rising inflation and tariff-related pressures could prompt a more hawkish monetary stance, which may temper bitcoin’s gains.
