Hong Kong (TDI): Bitcoin broke past $120,000 on Monday, reaching a level it had never seen before. The jump is largely being attributed to a mix of investor optimism and mounting interest in Washington over how cryptocurrencies should be handled.
During early trading hours in Asia, Bitcoin climbed as high as $121,207 before giving up a bit of ground. Even so, it was still trading above $121,000 later in the day, holding onto gains of roughly 1.5%.
The latest rally appears to be tied to expected developments in US policy circles. Lawmakers in Congress are gearing up to discuss a set of crypto-related bills, proposals that could finally give the industry some long-awaited regulatory clarity.
Among the proposed legislation are the Genius Act and the Clarity Act, both seen as crucial steps toward bringing legal clarity to the sector.
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Adding to the momentum is President Donald Trump’s latest declaration of support. The US president, who has taken to calling himself the “crypto president,” has urged Congress to modernize existing laws and support the growth of digital finance.
His backing has been welcomed by many in the industry, with some investors taking it as a sign that broader political support may be on the horizon.
Bitcoin has climbed 29% since the start of the year, leading a broader rally across the cryptocurrency market. Ethereum (ETH), the second-largest digital asset, hit a five-month high of $3,050. XRP and Solana also registered gains of around 3% each.
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The total market capitalization of the cryptocurrency sector now stands at roughly $3.78 trillion, according to CoinMarketCap.
In recognition of the sector’s rising influence, US lawmakers have designated this week as “Crypto Week,” during which Congress will vote on several key pieces of legislation. The most prominent is the Genius Act, which proposes clear federal regulations for stablecoins, a move seen as a major milestone for digital finance.
Meanwhile, enthusiasm isn’t limited to US markets. Crypto-linked exchange-traded funds (ETFs) in Hong Kong surged in tandem. Spot bitcoin ETFs launched by China AMC, Harvest, and Bosera all reached new highs. Ether-based ETFs under the same firms saw gains of approximately 2%.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
