Bitcoin crossed the US$120,000 (RM510,300) mark for the first time, driven by growing investor interest and upcoming regulatory developments in the United States. As attention turns to Washington’s “Crypto Week,” market enthusiasm appears strong, with traders watching both legislative action and price movements closely.

The leading cryptocurrency climbed as much as 3.4% to reach US$123,205 before settling near US$121,600 in early New York trading. Ethereum (also known as Ether), the second-largest digital asset, also rose above US$3,000. Other cryptocurrencies, including XRP and Uniswap, saw similar gains.

Political Climate and Market Trends Boost Bitcoin

Bitcoin’s rise follows months of price swings around the US$100,000 mark. The recent boost came in part after Donald Trump secured a second term as U.S. president. Although some investors remain cautious about his economic policies, optimism is building around his administration’s supportive stance on cryptocurrency.

At the same time, traditional markets such as U.S. stocks are also trading near record highs, reinforcing positive sentiment across risk-based assets. This broad momentum has helped propel Bitcoin to new territory.

Market participants note that this rally is different from earlier surges. According to Halogen Capital, the recent price action reflects a maturing market structure, shaped increasingly by institutional investors.

“While Bitcoin’s new all-time high of US$123,000 (~RM520,000) is certainly headline-grabbing, it’s crucial to understand how today’s rally differs from past cycles in 2021 and 2017,” said Hann Liew, CEO of Halogen Capital. “We’ve observed a steady rise in institutional demand over the past 18 months, with banks, asset managers, and corporates now participating alongside retail investors.”

U.S. Legislation Offers Regulatory Clarity

Key developments in U.S. crypto policy are also playing a role in Bitcoin’s surge. This week, the House of Representatives is set to consider several major bills. These include the CLARITY Act, the Anti-CBDC Surveillance State Act, and the Senate’s GENIUS stablecoin framework.

These proposed laws aim to establish a clearer regulatory environment for digital assets. Analysts say this direction could support long-term growth by reducing uncertainty for institutional investors.

George Mandres, a senior trader at XBTO Trading, described the shift as part of a broader change in perception: “Bitcoin is increasingly viewed not just as a speculative asset, but as a hedge against economic instability and a scarce store of value.”

Institutional Investment at Record Levels

Investor interest continues to grow. Last week, U.S.-based Bitcoin exchange-traded funds (ETFs) saw net inflows of over US$2.7 billion. This marks the fifth-largest weekly inflow since their introduction in January 2024.

Together, these 12 Bitcoin ETFs now manage about US$151 billion in assets. Meanwhile, Bitcoin futures reached a record open interest of US$86.3 billion, according to data from Coinglass.

Bitcoin’s value has increased about 30% in 2025 so far, following a strong performance last year in which it more than doubled.

Broader Market Gains Continue

The momentum is also lifting smaller cryptocurrencies. Ether climbed as much as 2.9% on Monday. Other coins such as Chainlink and Solana also posted notable gains. Several altcoins, including Stellar (XLM), Algorand (ALGO), and Hedera (HBAR), saw over a 50% increase in a week. 

“These are among the altcoins Luno has proposed to the Securities Commission Malaysia that were aligned with the regulator’s requirements,” said Scarlett Chai, Country Manager for Luno Malaysia. “Of the three coins above, ALGO and HBAR were launched this year as part of Luno’s effort to expand the list of tradable digital assets in the country.”

Short Sellers Face Heavy Losses

The recent price jump has caused major losses for investors betting against Bitcoin. More than US$1 billion in short positions were liquidated late last week, according to Coinglass.

This covering of short positions often strengthens upward momentum, as traders exit losing positions and add to buying pressure.

Corporate Holdings Continue to Grow

Institutional holders are also increasing their exposure. Michael Saylor’s firm, Strategy, now holds over US$73 billion worth of Bitcoin. The company has resumed buying the asset as prices reach new highs.

At the same time, Luno reports record demand from institutional clients in Malaysia, a trend that mirrors global shifts in sentiment.

“We’ve not seen a demand like this from institutions,” said Chai. “Investors are optimistic about the US government’s supportive stance toward crypto, which makes them confident about Bitcoin’s future.”

She also highlighted how the asset class has matured over time. “The crypto market has evolved so much in the past couple of years, largely led by Bitcoin. Today, despite the scepticism of the asset class, Bitcoin is the fifth largest asset by market cap after Apple — one of the world’s most recognisable brands.”

Analysts Offer Cautious Optimism

While the market sentiment remains strong, not everyone agrees that Bitcoin’s rise is sustainable.

“This doesn’t look like a macro-driven rally,” said Nicolai Sondergaard, a research analyst at Nansen. Still, U.S. policy changes like fiscal expansion and possible interest rate cuts are creating a favorable environment for Bitcoin.”

Amid the excitement, investors are also being warned to stay alert. Luno cautions that the rise in crypto’s popularity has also brought an uptick in scams.

“Steer clear of any investment schemes that seem too good to be true, especially if they’re social media advertisements promising good returns,” Chai warned. “Regulated crypto exchanges will never engage third parties to facilitate the investment or trade on your behalf.”

(Source: Bloomberg)

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• TAGS:
• Bitcoin
• Crypto Week
• Cryptocurrency
• Ethereum
• Halogen Capital
• Hann Liew
• Luno Malaysia
• Scarlett Chai
• Uniswap