Bitcoin reaches all-time high above $120,000 ahead of ‘Crypto Week’
Bitcoin has achieved yet another milestone, surging to a record high above $123,000 on Monday. This significant increase demonstrates the growing acceptance of the digital token among mainstream investors, especially with the backing of a pro-crypto White House. The cryptocurrency reached an all-time high of $123,153.22 before settling around $119,800 as of 4:30 p.m. Bitcoin has seen a remarkable increase of more than 27% since the beginning of the year.
IG market analyst Tony Sycamore attributes Bitcoin’s current momentum to various factors, including institutional demand, expectations of further growth, and support from influential figures like Trump. The upcoming “Crypto Week” adds to the positive sentiment, as the House of Representatives plans to review a series of crypto-related bills. While these legislations do not primarily focus on Bitcoin, they aim to establish clearer regulations in the industry, such as the proposed Genius Act, which seeks to create federal guidelines for stablecoins tied to the US dollar.
President Trump’s favorable stance on cryptocurrency has contributed to changing perceptions about it. During his campaign, Trump positioned himself as a pro-crypto leader advocating for looser regulatory constraints on the industry. Joe Kelly, co-founder and CEO of Unchained, notes that the absence of concerns regarding a potential government ban has eliminated a significant barrier for investors, enabling Bitcoin to set new all-time highs and attract renewed interest.
Institutional investors and corporations continue to show interest in Bitcoin exchange-traded funds (ETFs). Inflows into ETFs hit a record high of $1.18 billion last week, with a total of $15 billion invested in Bitcoin ETFs over the past six to eight weeks. BlackRock’s Bitcoin ETF has amassed nearly $90 billion in assets under management, making it the fastest-growing fund in the firm’s history.
Matt Hougan, chief investment officer at Bitwise Asset Management, anticipates Bitcoin exceeding $200,000 by year-end due to substantial institutional and corporate inflows. However, potential challenges lie ahead, as Trump threatens a trade war with the EU and Mexico, hinting at imposing substantial tariffs. Despite initial concerns, markets seem optimistic that lower rates will be negotiated before the August 1 deadline. High tariff rates could reignite inflation and slow economic growth, prompting policymakers to consider interest rate hikes that could impact Bitcoin’s trajectory.
As Bitcoin continues its upward trajectory, fueled by increasing demand and limited supply, it remains to be seen how external factors like trade wars and tariffs will influence its future performance. For now, the cryptocurrency remains resilient in the face of potential challenges, demonstrating its ongoing appeal to investors seeking alternative investment opportunities.
