Bitcoin smashed through $120,000 on Monday to trade at a fresh record high as traders geared up for ‘crypto week’ in the US amid inflows into Bitcoin ETF.
Congress will debate the future of cryptocurrency and its integration into mainstream finance this week. The GENIUS act could see the formation of a framework for pegging stable coins, while the CLARITY act seeks to lay down a regulatory framework with bodies such as the SEC.
The debates in Congress take place against a backdrop of heavy support for crypto from the US President, whose family have profited in a big way from various coins since he won his second term.
“Bitcoin extended its advance on Monday, breaking above the USD 122,500 mark as optimism surrounding regulatory developments in Washington and sustained institutional inflows continued to underpin sentiment,” said Kudotrade’s Konstantinos Chrysikos.
“The move coincides with the start of “Crypto Week” in the U.S. House of Representatives, where lawmakers are set to debate a trio of bills, the GENIUS Act, CLARITY Act, and Anti-CBDC Surveillance State Act seen by market participants as a foundational step toward comprehensive digital asset regulation.”
Konstantinos continued to outline key purchases of Bitcoin that were supported by prices, including inflows into US Bitcoin ETFs.
“Investor appetite has also been amplified by fresh corporate interest. Tokyo-listed Metaplanet Inc. disclosed the purchase of 797 Bitcoin, lifting its reserves to over 16,000 and indicating a continued shift toward corporate treasury adoption of digital assets. Meanwhile, spot Bitcoin ETFs in the U.S. have registered important inflows, exceeding USD 1 billion two days in a row. However, the surge in price could expose the market to price corrections if traders move to take profits. Otherwise, a continued bullish sentiment could drive the asset to new highs.”