Bitcoin hits record high, surges past $1,22,000 in 'Crypto Week'

Bitcoin, the leading cryptocurrency, has experienced a notable surge, reaching $122,490 and marking over 30% increase since December. This upward trajectory underscores Bitcoin's recovery from previous trading ranges and highlights the impact of institutional inflows, notably in spot Bitcoin and Ethereum ETFs. The rise has been largely attributed to the liquidation of bearish positions, with over $1 billion in shorts wiped out, according to Coinglass data. The anticipation of the Congressional "Crypto Week" is also seen as a catalyst, as U.S. lawmakers are expected to discuss key cryptocurrency legislation. Additionally, smaller tokens like Ether, XRP, and Solana have also seen gains, reflecting the broader market enthusiasm.

Himanshu Maradiya, Founder & Chairman, CIFDAQ said, "Bitcoin has smashed past $122,000, marking fresh all-time highs as institutional demand and policy tailwinds fuel the rally. The latest surge follows last week's 10% rise, with over $289 million in short liquidations amplifying momentum. Bitcoin ETFs saw $1.2 billion in inflows on Thursday and $1.03 billion Friday, pushing total U.S. ETF net inflows beyond $50 billion to date."

"The rally coincides with Congress' "Crypto Week," where lawmakers will vote on the CLARITY Act, Anti-CBDC Act, and GENIUS Act, aiming to establish regulatory clarity and permanently block CBDCs. With Trump’s pro-crypto policies, regulatory easing, and macro uncertainty, Bitcoin’s case as a mainstream asset is rapidly solidifying," he added 

However, there is caution among some analysts who view the rally as possibly isolated. Nicolai Sondergaard of Nansen remarked, "In my view, this isn’t a macro-driven rally, but rather an isolated event." Despite these reservations, he acknowledged that "recent US policy developments such as fiscal expansion and expectations of further monetary easing have created a backdrop that is undeniably favourable for Bitcoin." This backdrop, combined with a broader risk-on sentiment in equities, has helped drive Bitcoin's recent ascent.