Bitcoin Surges to Historic $123K Amid Anticipation of U.S. Crypto-Friendly Policies

Bitcoin soared past $120,000 for the first time on Monday, marking a new all-time high as optimism grows around possible regulatory breakthroughs in the U.S. The leading cryptocurrency briefly touched $123,153.22—its highest level ever—before pulling back slightly. At last check, it was trading at $119,750.86, still showing a year-to-date gain of over 27%.

This remarkable rally comes as lawmakers in the U.S. House of Representatives prepare to deliberate on several crucial crypto-focused bills this week, which Republican leaders have dubbed “Crypto Week.” These legislative efforts aim to establish a much-anticipated regulatory structure for the digital asset space. Former U.S. President Donald Trump, now a vocal advocate for the industry, has embraced the label “crypto president,” calling for reforms that favor digital currencies. His administration’s support is viewed by many market participants as a key tailwind for the ongoing rally.

Source: Reuters

Tony Sycamore, a market strategist at IG, noted that multiple positive factors are currently driving Bitcoin's price, including growing institutional interest, favorable political backing, and expectations of continued upside. “The momentum has been powerful over the past week,” Sycamore said. “If this trend holds, Bitcoin could soon test the $125,000 mark.” Trump and his associates have been increasingly active in the crypto space. This includes involvement in new ventures such as World Liberty Financial, as well as the release of a meme coin in January. Despite an initial price surge to around $75, the token—called $TRUMP—was down 3.4% on Monday, trading at $9.45, according to CoinMarketCap. The latest Bitcoin rally has also lifted the broader crypto market. Ethereum (ETH), the second-largest token, reached $3,081.94—its highest since early February—though it remains down over 10% in 2025. XRP gained 2.7%, after briefly rising 6.4% during the session. Overall, the total market capitalization of the crypto sector has ballooned to roughly $3.8 trillion, based on CoinMarketCap data. However, analysts like Simon Peters from eToro caution that Bitcoin’s record in U.S. dollars does not necessarily translate to new highs in other currencies, hinting at underlying dollar weakness as a contributing factor. U.S. "Crypto Week" Begins

Republican lawmakers have named the current week starting July 14 as “Crypto Week,” with votes scheduled on three pivotal pieces of legislation: the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act.

The Genius Act stands out among these bills, aiming to introduce a federal framework for the issuance and management of stablecoins. Analysts believe passage of these bills could provide added fuel to the current rally. “Progress on this legislation could significantly strengthen the market’s momentum,” said Peters.

Crypto Stocks, ETFs Also Rally

The bullish sentiment wasn’t limited to cryptocurrencies alone. Shares of crypto-related companies and ETFs also saw gains. Coinbase stock rose 1.8%, while MicroStrategy, a major corporate holder of Bitcoin, climbed 3.5%. Crypto mining firm Mara Holdings posted a modest increase of 0.1%.

Oppenheimer analysts remain cautious about Coinbase ahead of its July 31 earnings report, but they raised their price target to $417 from $395, suggesting a better entry point might emerge post-results.

Meanwhile, in Asia, Hong Kong-listed spot Bitcoin ETFs from China AMC, Harvest, and Bosera hit record highs, reflecting the global appetite for digital assets. Disclaimer: The content provided is for informational purposes only and does not constitute financial, legal, or professional advice. Readers should conduct their own research before making any decisions. Source: Reuters