Bitcoin price briefly climbs and hit a new record today, reaching $123,153 before pulling back slightly. The sharp rise comes as investors grow more confident about potential changes in U.S. cryptocurrency policy. Although the price eased to $119,745 later in the day, it still marked a 0.5% increase.
So far this year, Bitcoin has gained 30%. Analysts point to growing interest from major financial institutions and signs of political support as key reasons for the surge. Many in the industry are now closely watching developments in Washington, where lawmakers are expected to vote on new crypto regulations in the coming days.
US policy developments could reshape Bitcoin, crypto market
A series of bills aimed at regulating digital currencies are on the table in Congress this week, a period some Republicans are calling “crypto week.” One of the most anticipated proposals, known as the Genius Act, could establish clear federal rules for stablecoins—digital currencies tied to traditional ones like the U.S. dollar.
Support from President Donald Trump has added more energy to the market. Trump has repeatedly promoted digital assets, calling for modernized laws and more room for innovation. He and his family have also made direct investments, including backing a cryptocurrency project called World Liberty Financial and launching a meme coin earlier this year.
Despite Trump’s high-profile involvement, one of the tokens linked to him, $TRUMP, dropped 3.4% on Monday to $9.45. The token had previously reached a high of $75. Entrepreneur Justin Sun, a major investor in the coin, recently announced a $100 million increase in funding, though the impact of that move remains uncertain.
Market analyst Tony Sycamore said Bitcoin’s strong momentum shows few signs of slowing. He suggested the cryptocurrency could test the $125,000 level if investor sentiment remains positive.
Other digital assets and crypto stocks see gains
The rise in Bitcoin also boosted other parts of the crypto market. Ether, the second-largest digital currency, hit a five-month high of $3,081.94. XRP rose nearly 5%. Altogether, the value of all digital assets reached an estimated $3.8 trillion.
While Bitcoin’s growth is strong in U.S. dollar terms, some experts say the rally hasn’t spread equally in global markets. Analyst Simon Peters of eToro noted that Bitcoin hasn’t hit records when priced in other major currencies. He said weakness in the U.S. dollar may be partly behind the recent spike.
Crypto-related companies also saw gains in the stock market. Coinbase shares rose 1%, while Strategy, a firm holding Bitcoin, gained 2.6%. Mining company Mara Holdings climbed 6.3%. In Asia, Hong Kong-listed Bitcoin exchange-traded funds from China AMC, Harvest, and Bosera all reached new highs.
As U.S. lawmakers prepare for key votes, market watchers say clearer rules could fuel further growth in the sector.