On Monday, Bitcoin crossed the impressive threshold of $120,000, marking a pivotal moment for the global cryptocurrency landscape.

Reuters reports this development.

Bitcoin soared to a record high of $122,571.19, before slightly retreating and closing at $121,952.61.

This surge occurred amid discussions in the U.S. Congress regarding legislative measures that could provide a legal framework for the digital asset industry. These proposals have garnered support from the U.S. president, who has advocated for more lenient regulations.

Market analyst Tony Sycamore from IG attributed the rise in Bitcoin to strong institutional demand, expectations of further price increases, and backing from President Trump.

“This has been a very strong move over the last six or seven days, and it’s hard to say where it will stop. It seems likely it could easily reach $125,000,” he stated.

Bitcoin's rise, which has already increased by 29% this year, has sparked a broader rally among other cryptocurrencies over the past few sessions. Ethereum, the second-largest token, hit a five-month high of $3,059.60, while XRP and Solana saw gains of around 3%.

This month, Washington declared the week starting July 14 as “Crypto Week,” as Congress members are set to vote on the Genius Act, Clarity Act, and Anti-CBDC Surveillance State Act. The most significant of these bills is the Genius Act, which aims to establish federal regulations for stablecoins.

In June, the U.S. Senate passed a bill to create a regulatory framework for stablecoins pegged to the U.S. dollar, marking a critical milestone for the digital asset industry.