NEW YORK: Bitcoin has crossed the $120,000 mark for the first time, marking a major psychological milestone for the world’s largest cryptocurrency. The surge follows weeks of relatively flat trading, during which many investors questioned whether Bitcoin would regain the momentum it had earlier in the year.
The price of Bitcoin climbed to as high as $123,000 before stabilising around $121,500, driven by renewed investor confidence and growing institutional interest. Analysts say the rally has been fuelled by expectations of regulatory clarity in the United States as Congress prepares for what is being dubbed “crypto week.” Several bills related to digital assets, including the Genius Act and the Digital Asset Market Structure Bill, are expected to be reviewed.
This latest surge adds to a nearly 30% gain for Bitcoin in 2025 so far. Market watchers point to macroeconomic factors, including a weakening dollar and inflation concerns, as further reasons why investors are returning to Bitcoin as a digital store of value. Support from large companies and increased use of Bitcoin in financial portfolios have also boosted the rally.
However, experts caution that the market remains volatile and further gains may depend on how regulatory developments unfold. Resistance is expected around the $125,000 level. Meanwhile, other major cryptocurrencies also rose, and the overall crypto market capitalisation edged closer to the $4 trillion mark.
Bitcoin’s breakout above $120,000 may mark the beginning of a fresh rally, but investors are being urged to watch the policy landscape closely.
