Bitcoin Surges Past $120,000 Amid Growing Investor Optimism

Bitcoin crossed the $120,000 mark for the first time, fueled by growing investor confidence and renewed momentum after months of sideways trading that had left skeptics questioning its direction.

The rally gained strength following the re-election of Donald Trump as U.S. President. After the initial surge, Bitcoin hovered around the $100,000 level for several months, as market sentiment was dampened by uncertainties surrounding Trump’s economic policies — despite his administration’s pro-crypto stance. Now, with broader risk assets like equities also reaching record highs, Bitcoin has resumed its upward trend.

“This shift signals a maturing perspective on Bitcoin — not merely a speculative asset, but a macro hedge and a structurally scarce store of value,” said George Mandres, senior trader at XBTO Trading LLC. “A surge in risk-on sentiment across equities, coupled with significant institutional inflows into spot Bitcoin and Ethereum ETFs, has fueled this steady ascent, notably absent the sharp volatility of previous bull runs.”

Bitcoin rose as much as 1.9% to $121,344 and is now up roughly 30% since December. The world’s largest cryptocurrency more than doubled in value last year.

A key factor behind the recent rally was the forced liquidation of bearish crypto positions, with over $1 billion in short bets wiped out at the end of the week, according to data from Coinglass.

Investor excitement has also been bolstered by anticipation of “Crypto Week” in the U.S. Congress, where lawmakers are expected to debate and potentially vote on major cryptocurrency legislation.

Still, not all analysts are convinced the rally is sustainable. “In my view, this isn’t a macro-driven rally, but rather an isolated event,” said Nicolai Sondergaard, a research analyst at Nansen. “That said, recent U.S. policy developments such as fiscal expansion and expectations of further monetary easing have created a backdrop that is undeniably favorable for Bitcoin.”

—With assistance from Suvashree Ghosh.