Bitcoin Soars Past $120,000 Amid Economic Shifts and Legislative Momentum

Bitcoin surpassed yet another record early Monday, topping the $120,000 mark for the first time. The rise of the cryptocurrency shows that investors are becoming more confident, thanks to news from Capitol Hill and worries about inflation and the U.S. dollar losing value.

Even though bitcoin is known for being volatile, its price changes are generally similar to those of riskier assets like tech stocks. But by 2025, it has far outpaced them. Bitcoin has gone up 25.9% this year as of last Friday. Gold had gone up 27.7%, which is the second most. The Nasdaq 100, on the other hand, went up by 8.7%, while the S&P 500 went up by 7%.

The digital asset class hit a total market value of $2.4 trillion on Monday morning, with around 20 million bitcoins in circulation. This puts it ahead of Amazon and closes the gap with Apple, which has a market worth of $3.1 trillion, making it the fifth most valuable asset in the world, according to CoinTelegraph.com.

A lot of bitcoin’s recent growth has happened in the last few weeks, thanks to a few crucial factors. Bitcoin investors have been encouraged by two things: a partial halt to former President Donald Trump’s trade war and the approval of his tax and spending bill, which cuts taxes but increases the federal debt.

At the same time, the dollar’s drop versus other currencies around the world has made bitcoin more attractive as a hedge for international investors who are worried about the The long-term role of the U.S. dollar as the world’s main currency.

This is getting stronger because big banks are becoming more interested. This is partly because of new bills in Congress that are talking about cryptocurrencies. The GOP controls the House of Representatives, and this week is even called “Crypto Week” because three important bills are being worked on.The GENIUS Act is one among them. Its goal is to make it clear how firms can legally make their own digital tokens.

Democrats, who are still more doubtful about the broad use of cryptocurrency, are likely to suggest a number of changes to the measures. But it’s still not clear if these changes will work.

Bloomberg says that Donald Trump’s net worth has gone up by around $620 million because of the recent spike in crypto. Some Democrats have criticized this, saying that the proposed law might just help Trump make money.

Rep. Maxine Waters of California, the leading Democrat on the House Financial Services Committee, said, “These bills would make Congress complicit in Trump’s unprecedented crypto scam.”

People have different ideas on where bitcoin might go next. Its path is still tightly tied to interest rates around the world. When interest rates are low, investors generally look for riskier assets, such as bitcoin. But central banks may start to raise rates in economies that are usually fiscally conservative because of rising inflation and government spending.

Matthew Weller, the global head of research at FOREX.com, said earlier this month, “The risk that central banks shift their focus back to the risks of re-accelerating inflation may become a potential headwind for Bitcoin in the second half of the year, especially as fiscal policy becomes more accommodative.”