TLDR
- Bitcoin broke through $120,000 for the first time on Monday, trading around $123,000 as US Congress prepares for “Crypto Week”
- Technical analysis shows Bitcoin breaking out from consolidation patterns with upside projections to $140,000
- US House will debate key crypto legislation this week including the CLARITY Act and Anti-CBDC Surveillance State Act
- Bitcoin ETFs saw over $2.7 billion in inflows last week, with total assets under management reaching $151 billion
- Over $1 billion in short positions were liquidated as bearish traders faced losses from the rapid price advance
Bitcoin reached a new all-time high above $120,000 on Monday morning. The cryptocurrency traded as high as $123,000 before pulling back slightly.
The price surge comes as the US House of Representatives prepares for “Crypto Week” starting Monday. Congress will debate several key pieces of crypto legislation during this period.
Bitcoin has been consolidating between $80,000 and $112,000 for the past six months. The breakout above this range occurred on Friday, setting up the current rally.
Technical analysis suggests further upside potential. Bitcoin recently broke out from a large three-year rounding base pattern. The cryptocurrency formed what analysts call a “high-level consolidation” within this base.
After reaching $109,000, Bitcoin spent six months in the $80,000-$112,000 range. This consolidation period was smaller and quicker than previous ones, which is characteristic of strong advances.
Legislative Momentum Drives Interest
The House will vote on the CLARITY Act this week. This legislation aims to provide regulatory clarity for the crypto industry. Congress will also consider the Anti-CBDC Surveillance State Act and the Senate’s GENIUS stablecoin package.
These bills are part of President Trump’s crypto-friendly agenda. Republicans are working to advance legislation that supports digital assets.
The prospect of clear US regulatory framework has boosted institutional confidence. Investors view potential regulation as positive for long-term crypto adoption.
George Mandres from XBTO Trading LLC said this represents a shift in perspective. He noted that Bitcoin is increasingly viewed as a macro hedge and store of value rather than just a speculative asset.
Strong Institutional Demand
Bitcoin ETFs attracted over $2.7 billion in net inflows last week. This marked the fifth-largest weekly inflow since the ETFs launched in January 2024.
And, it appears that institutional capital is chasing this Bitcoin run.
Bitcoin ETF, $IBIT, has reached a record $76 BILLION in assets under management in under 350 days.
By comparison, it took the largest gold ETF, $GLD, over 15 years to reach the same milestone. pic.twitter.com/NW7LkWkvhF
— The Kobeissi Letter (@KobeissiLetter) July 14, 2025
The 12 US Bitcoin ETFs now manage approximately $151 billion in total assets. Open interest in Bitcoin futures reached a record high of $86.3 billion on Monday.
Institutional demand has been a key driver of Bitcoin’s recent performance. The cryptocurrency is up roughly 31% for the year after more than doubling in 2024.
The rally has also lifted other cryptocurrencies. Ether rose as much as 2.9% on Monday, while XRP and Solana also posted gains.
Rachael Lucas from BTC Markets said Bitcoin’s next test is $125,000. She noted that support at $112,000 makes any dip look like a buying opportunity.
The latest rally was helped by liquidations of bearish positions. Over $1 billion in short positions were wiped out at the end of last week, according to Coinglass data.
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