Bitcoin has reached $122.5K, becoming the fifth-largest asset globally by market capitalization. Alongside the record-breaking price rally, institutional activity through exchange-traded funds (ETFs) has intensified, and expectations are rising for new regulatory developments in the United States regarding digital assets. Altcoins have also joined the upward trend.
The Fifth Largest Asset Worldwide
On Monday, Bitcoin’s price climbed to $122.5K, crossing the $120K threshold for the first time. The asset’s market capitalization hit $2.427 trillion, surpassing Amazon, silver, and Google. Bitcoin now trails only gold ($22.675 trillion), NVIDIA ($4.022 trillion), Microsoft ($3.74 trillion), and Apple ($3.135 trillion).
Former Binance CEO Changpeng Zhao took to X to recall how in 2017, a new all-time high of $1K felt significant. Today, that figure is less than 1% of the current ATH.
“You're celebrating a new peak right now. But in a few years, it will feel trivial,” he said.
What’s Driving the Rally
According to Vincent Liu, Chief Investment Officer at Kronos Research, the current rally is driven not just by demand, but by changes in infrastructure. He pointed to three key factors:
- inflows of institutional capital through ETFs,
- positive signals coming from Washington,
- and improved global liquidity.
Data from SoSoValue shows that cumulative inflows into U.S. spot bitcoin ETFs have surpassed $16 billion. These funds have been recording consistent positive flows for several consecutive weeks.
Legislation and Fed Expectations
The rally is also being fueled by what’s known as “crypto week” in the U.S. Congress. Lawmakers are currently discussing major initiatives, including the CLARITY Act and the GENIUS Act, both of which could significantly reshape the regulatory framework for crypto markets.
Liu believes that if positive ETF flows continue and expectations for rate cuts from the Federal Reserve remain stable, BTC could reach $130K to $150K by the end of the year.
Scenarios and Risks
That said, Liu sees the main risk in unstable retail interest. If institutional demand slows or if political uncertainty increases, it could stall the current trend.
Eugene Cheung, Trading Director at crypto exchange OSL, also sees the potential for BTC to hit $130K to $150K, but with a longer timeframe extending to the end of 2025.
Altcoins and Indexes Climb Higher
Bitcoin’s surge has lifted other assets as well. Over the past 24 hours, Ethereum rose by 3,48% to above $3K. XRP gained 7,19%, reaching $2.97, while Solana climbed 3,56% to $167.66. The GMCI 30 index, which tracks the performance of the 30 largest cryptocurrencies, rose 3,6% over the same period.
This post is for informational purposes only and does not constitute advertising or investment advice. Please conduct your own research before making any financial decisions.
