Bitcoin has hit a remarkable milestone, soaring beyond $120,000 for the first time, reaching nearly $123,000 early on Monday morning. This significant surge, which represents a 3% increase in just one day and over 12% for the week, marks a new all-time high.
This recent leap in Bitcoin’s value follows a period where it lingered below $110,000 for more than a month, coinciding with rallies in the stock market leading up to Thursday and throughout the weekend.
The uptick in Bitcoin’s price appears to be fueled by strong interest from institutional investors, many of whom are likely engaging with cryptocurrencies through digital asset offerings from reputable Wall Street firms. Data from Crypto investment firm Coinshares indicates that the Crypto ETF from BlackRock has attracted more than $2.4 billion in inflows over the past week.
In addition, Ethereum, the second-largest cryptocurrency by market cap, has experienced a nearly 3% gain in the last 24 hours, surpassing $3,000, and enjoying a week-long hike of 20%. However, despite these gains in the top two cryptocurrencies, the overall market capitalization of all digital assets has decreased by 0.5% daily, settling around $3.87 trillion.
Overall, Crypto ETFs saw a total influx of $3.7 billion last week, according to Coinshares. James Butterfill, Coinshares’ head of research, points to the rising “political developments and signals from the Federal Reserve” as influencing Bitcoin’s momentum.
This comes on the heels of the Federal Reserve releasing minutes from its June meeting, where there was a general consensus that interest rates might be lowered later this year. One participant noted that “some reductions in the target range for this year’s federal funding rate would likely be appropriate.”
Furthermore, positive political movements regarding regulations in Congress have also bolstered investor confidence, according to Butterfill. The House is expected to vote this week on the Genius Act, a bill that the Senate passed in June aimed at regulating stablecoins. Additionally, there will be a vote on a law that outlines how financial institutions in the U.S. should manage significant digital assets.
