The cryptocurrency has topped $120,000, fueled by strong demand from institutional investors and growing support for crypto in the US

Bitcoin has surged past $120,000, setting a new record and bringing its year-to-date gains to nearly 30%. According to CoinDesk data, the cryptocurrency was trading at around $122,700 as of 08:00 GMT on Monday.

Analysts have attributed the rally to strong institutional demand and a shift in American policy, driven by US President Donald Trump, who has dubbed himself the "crypto president" and pushed for friendlier rules for the industry following his campaign promise to establish his country as the "crypto capital of the world."

Under Trump's SEC pick, Paul Atkins, the agency has dropped multiple crypto lawsuits and approved the first Bitcoin ETFs, opening up the asset to broader investment. Bitcoin ETFs surpassed $50 billion in net inflows on July 10, Farside Investors data showed.

In March, Trump alsosignedan executive order to establish a US Strategic Bitcoin Reserve, aligning with his pledge to make the US the "crypto capital of the world." Arizona and New Hampshire have since passed laws creating state-level Bitcoin reserves.

Some experts have also point to Bitcoin's inverse relationship with US currency, noting that while the US Dollar Index (DXY) fell nearly 10% this year, the cryptocurrency has gained appeal as a store of value.

The dollar's decline is partly tied to economic uncertainty stemming from Trump's importtariffs, analysts say, predicting that if the trend continues, the world's most popular digital asset could climb even higher.

Bitcoin's rise comes ahead of "Crypto Week" in the US: starting on Monday, the House of Representatives is set to debate several bills aimed at clarifying crypto regulation.

One key proposal, the Genius Act, would set federal standards for US dollar-pegged stablecoins and create a pathway for private firms to issue digital dollars.

Lawmakers will also review the CLARITY Act, which outlines rules for using, storing, and safeguarding digital assets, and the Anti-CBDC Surveillance State Act, which would bar the Federal Reserve from directly issuing retail central bank digital currency to individuals.

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Bitcoin's rise has sparked a broader rally across other cryptocurrencies. Ether, the second-largest coin, hit a five-month high of $3,048 on Monday. The total crypto market capitalization now stands at $3.78 trillion, according to CoinMarketCap.

(RT.com)