Bitcoin has smashed through the $120,000 mark for the first time in its history, trading at approximately $122,700 on Monday morning, according to CoinDesk. The landmark rally has lifted the cryptocurrency’s year-to-date gains to nearly 30%, driven by a wave of institutional investment and sweeping policy shifts in Washington.
Analysts point to U.S. President Donald Trump’s full-throttle embrace of the digital asset sector as a key factor behind Bitcoin’s meteoric rise. Branding himself the “crypto president,” Trump has taken several steps to establish the U.S. as the “crypto capital of the world.”
Central to the surge is the recent regulatory turnaround led by Trump’s SEC chair, Paul Atkins. The commission has dropped multiple high-profile lawsuits and greenlit several Bitcoin exchange-traded funds (ETFs), paving the way for over $50 billion in net inflows as of July 10, according to Farside Investors.
Trump’s executive order in March to create a U.S. Strategic Bitcoin Reserve further boosted confidence. States like Arizona and New Hampshire have since followed suit with legislation for state-level Bitcoin reserves.
“These developments have fundamentally changed the landscape for crypto investing in the U.S.,” said tech investor Marcus Flynn. “We’re seeing the beginning of a new financial era.”
Bitcoin’s rise is also linked to the weakening U.S. dollar, with the Dollar Index down nearly 10% in 2025 amid renewed trade tensions and tariff-driven economic uncertainty. As a result, investors are turning to Bitcoin as a hedge against inflation and currency depreciation.
The bullish sentiment comes as the U.S. House kicks off “Crypto Week,” debating landmark bills like the Genius Act and CLARITY Act aimed at defining stablecoin and digital asset rules.
Ethereum followed suit, jumping to $3,048—its highest level since February. The total cryptocurrency market capitalization has now reached $3.78 trillion.
