Bitcoin tops $120k for first time, reaching a new all-time high on Monday. The largest cryptocurrency in the world rose to $121,207.55 in the Asian session and then retreated a little. It was last traded at 1.6 percent up at 121,015.42. This rally is an indication of increased investor confidence as policy changes in favour of the crypto sector are anticipated.
As of today, the US House of Representatives will discuss the most important bills that will create a regulatory framework of the digital asset industry. These much-anticipated laws may determine the future of crypto in the United States.
Bitcoin Rally is Driven by Trump and Institutional Demand
The former president Donald Trump, who has renamed himself the crypto president, has encouraged legislators to enact crypto-friendly regulations. This approval, together with the high institutional interest, is still fueling the bullish trend.
According to IG market analyst Tony Sycamore, there are a number of tailwinds that are behind the rally of Bitcoin. These are institutional demand, the support of Trump, and anticipation of additional price increases. It has been a very powerful move in the last week, he said. It may well be able to test the $125,000 mark next.
Bitcoin has already gained 29 percent in 2021, leading to a wider rally in the crypto market. The second-largest cryptocurrency, Ether, reached a five-month high of 3,050.90. XRP and Solana increased by approximately 3 percent as well.
The overall market value of the sector is currently at 3.78 trillion dollars, as per the CoinMarketCap data.
Washington has announced this week as crypto week, and votes are likely to be cast on the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act. The Genius Act, specifically, would bring federal regulation of stablecoins, which is why it is the most awaited of the three.
In the meantime, crypto-linked exchange-traded funds (ETFs) in Hong Kong have also rallied. China AMC, Harvest, and Bosera launched Spot Bitcoin ETFs that hit new highs. Ether ETFs run by the same companies increased by approximately 2 percent each.
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