Bitcoin Reaches Record $123,000 Amid Institutional Momentum and Looming US Regulatory Shift

Bitcoin surged to an all-time high of $123,153 on Monday, driven by accelerating institutional adoption, growing optimism over regulatory clarity in the United States, and recent technical developments aimed at increasing the cryptocurrency’s utility and scalability.

The rally saw Bitcoin trading at around $122,000 at midday in Asia, a 2.4% increase on the day, extending a run of gains that has seen the asset rise over 30% since the start of the year.

The latest upward move coincides with a critical legislative moment in Washington, where lawmakers are set to begin debating several bills under the banner of “Crypto Week.” The proposed legislation includes the Genius Act, focused on stablecoin regulation; the Clarity Act, which aims to classify digital assets under federal law; and the Anti-CBDC Surveillance State Act, which seeks to prohibit the introduction of government-backed digital currencies on privacy grounds.

President Donald Trump has publicly endorsed the digital asset sector, referring to himself as the “crypto president” and calling for pro-industry regulatory reform. His administration’s backing has been interpreted as a political tailwind for markets seeking clarity after years of fragmented oversight.

“Bitcoin is riding a number of tailwinds at the moment,” said Tony Sycamore, analyst at IG Markets. “Strong institutional demand, regulatory optimism, and President Trump’s supportive stance are all contributing factors. From a technical standpoint, it appears capable of testing the $125,000 level in the near term.”

Institutional involvement continues to grow. Spot Bitcoin ETFs now manage close to $150 billion in assets, according to industry estimates, and treasury allocations to Bitcoin by corporate entities have risen. Analysts also note increasing participation by wealth managers and family offices across Asia, further reinforcing demand for Bitcoin as a perceived long-term reserve asset.

Gracie Lin, CEO of crypto exchange OKX in Singapore, noted that “Bitcoin is no longer viewed solely as a speculative asset. It is being considered as a store of value by both institutional investors and—more recently—some central banks.”

Alongside legislative and institutional trends, recent technical upgrades have also played a role in supporting sentiment. Notably, the adoption of BIP-119, known as OP_CHECKTEMPLATEVERIFY, is intended to improve smart contract functionality and scalability. Separately, the introduction of Bitcoin Hyper, a Layer 2 solution incorporating elements of Solana’s architecture, has been rolled out with the goal of increasing transaction throughput and efficiency.

Milei Faces Investigation Over Crypto Scandal, Opposition Pushes for Impeachment

The broader cryptocurrency market has followed Bitcoin’s lead. Ether, the second-largest token, climbed to $3,059—its highest level in over five months. XRP and Solana also posted gains of around 3%. As a result, the combined market capitalisation of digital assets has risen to approximately $3.81 trillion, according to data from CoinMarketCap.

Despite bullish momentum, analysts are warning of potential short-term corrections. Technical indicators suggest overbought conditions: the Relative Strength Index (RSI) stood at 78.47 on Monday, and the Stochastic Oscillator measured 96.67, both typically interpreted as signals of an overheated market.

The current price action places resistance at $122,666, with support levels noted near $105,100. The MACD indicator remains positive, showing strong momentum, while short-term moving averages (SMA7 and SMA20) continue to trend above longer-term averages.

Some exchanges, including Bitget and Bybit, have begun delisting less liquid trading pairs, a move interpreted as part of a wider market consolidation rather than a shift in overall sentiment.

Looking ahead, technical and macro indicators suggest continued upward potential. Analysts forecast a short-term target of $125,000, with possible moves toward $130,000 in the coming quarter, contingent on legislative progress and broader market stability. Over the longer term, institutional accumulation and decreasing market supply are viewed as factors that could push Bitcoin towards $150,000 by the end of the year.

However, risks remain. Delays or dilution of regulatory proposals in Washington could temper enthusiasm. Additionally, the crypto sector has seen over $2.24 billion in hacks this year, raising ongoing security concerns. Short-term volatility is also expected as investors take profits near key resistance zones.

Nevertheless, Monday’s record price highlights a shift in market perception of Bitcoin—from speculative asset to institutional-grade store of value. With increasing clarity on rules, improving infrastructure, and growing demand across multiple investor classes, Bitcoin’s role in global finance continues to evolve.

Read also:

British Bitcoin Miner Battles Newport Council for Access to £600m Landfill Treasure