Bitcoin reached a new all-time high of $122,571.19 before easing slightly to trade at $121,952.61, still up by 2.4 percent on the day.
Later, the US House of Representatives is scheduled to debate a set of bills aimed at giving the digital asset industry a long-awaited regulatory framework.
These industry demands have found support from US President Donald Trump, who has described himself as the “crypto president” and has urged lawmakers to reshape existing rules in the industry’s favor.
“It’s riding a number of tailwinds at the moment,” said IG market analyst Tony Sycamore, pointing to strong interest from institutions, positive market momentum, and backing from Trump as key reasons behind bitcoin’s rally.
“It’s been a very, very, strong move over the past six or seven days and it’s hard to see where it stops now. It looks like it can easily have a look at the $125,000 level,” he added.
Bitcoin’s rally, now showing a 29 percent gain for the year, has led to similar gains in other cryptocurrencies, even as global markets remain tense due to Trump’s unpredictable trade policies.
Ether, the second-largest cryptocurrency, climbed to its highest level in over five months at $3,059.60, while XRP and Solana each recorded around a 3 percent increase.
The total market capitalization of the cryptocurrency sector has now expanded to about $3.81 trillion, based on figures from CoinMarketCap.
“What we find interesting and are watching closely are the signs that bitcoin is now being seen as a long-term reserve asset, not just by retail investors and institutions but even some central banks,” said Gracie Lin, CEO of OKX Singapore.