Bitcoin has smashed through the $120,000 mark for the first time ever, marking a major milestone in the ongoing crypto bull run. The leading cryptocurrency surged as much as 1.9% to reach $121,344, rising about 30% since December. This rally comes alongside renewed strength in other risk assets like stocks, signaling a return of broad investor confidence.
Earlier in the year, Bitcoin had hovered near $100,000 after spiking during the excitement of Donald Trump’s re-election. Though the Trump administration was seen as pro-crypto, concerns about his political and economic direction led to caution in the market. But with equity indices returning to record highs, Bitcoin has also regained momentum.
George Mandres, senior trader at XBTO Trading LLC, noted that the shift reflects a growing maturity in how Bitcoin is viewed. No longer just a speculative play, it is being recognized as a scarce store of value and a macroeconomic hedge. He highlighted that this bull run has lacked the sharp volatility of previous cycles and has instead been fueled by institutional inflows into spot Bitcoin and Ethereum ETFs.
Other cryptocurrencies joined the rally. Ether rose 1.5%, while XRP and Solana gained around 2.7% in midday trading in Singapore. According to Rachael Lucas, a crypto analyst at BTC Markets, $120,000 is a critical level, but the real test lies at $125,000. While some short-term profit taking is expected, she believes the trend remains upward, especially with ETF demand driving buying pressure. Key support is seen near $112,000.
One factor driving the latest rally was a wave of liquidations that wiped out over $1 billion in short positions, according to Coinglass. Bears betting against Bitcoin were caught off guard by the sudden climb.
The rally also gained momentum ahead of what the US Congress is calling “Crypto Week,” where key cryptocurrency legislation is set to be debated. This has added another layer of anticipation and potential bullish sentiment in the market.
However, not everyone sees this surge as sustainable. Nicolai Sondergaard, a research analyst at Nansen, believes the current rally is more of an isolated event than a macro-driven trend. Still, he admits that recent US fiscal expansion and the potential for further monetary easing have created a favorable environment for Bitcoin to thrive.
As Bitcoin pushes into uncharted territory, the crypto community watches closely to see whether this rally will mark the beginning of another historic run or if it will face resistance at the next major psychological level.