Bitcoin Surges to $120K as Congress Opens Debate on Crypto Laws and Stablecoins

New York — Bitcoin jumped above $120,000 on Monday morning, setting a new record as investors brace for a week of major crypto policy debates in Washington.

The price of Bitcoin climbed as high as $123,205 in early trading before slipping back to around $121,600 by mid-morning. Other cryptocurrencies followed the move: Ether crossed $3,000, and altcoins like Solana, Chainlink, XRP, and Uniswap also gained.

Monday’s rally comes as Congress begins a week of votes on key crypto-related legislation. The House of Representatives is expected to take up several bills that could reshape how digital assets are regulated in the U.S.

Among them:

• The CLARITY Act, which would set clearer rules for crypto exchanges and token classification.

• The Anti-CBDC Surveillance State Act, which aims to block government-issued central bank digital currencies.

• The GENIUS Stablecoin Package, a Senate-backed plan to regulate stablecoins while keeping them legal to operate.

The push for new rules aligns with President Trump’s stated goal of making the U.S. friendlier to crypto businesses while keeping government-backed digital currencies in check.

ETF Demand Lifts Bitcoin Higher

Bitcoin’s price has also been driven by strong inflows into U.S. Bitcoin ETFs. Last week, investors put more than $2.7 billion into Bitcoin funds, making it one of the largest weekly inflows since spot ETFs launched in early 2024. The 12 U.S. Bitcoin ETFs now hold about $151 billion in assets.

“It’s not just retail traders driving this anymore,” said George Mandres, a senior trader at XBTO. “Institutional buyers are treating Bitcoin as part of a long-term strategy, not just a trade.”

Bitcoin futures markets tell a similar story. Open interest reached $86.3 billion on Monday, the highest on record, according to Coinglass data.

Short Sellers Get Burned

A big part of the rally came from traders who had bet against Bitcoin and were forced to buy back in as the price moved higher. Over $1 billion in short positions were wiped out in the past three days.

“These kinds of liquidations can really drive fast moves like this,” said Rachael Lucas, an analyst at BTC Markets. “Now the focus shifts to $125,000. That’s the next big level traders are watching.”

Lucas said Bitcoin still has strong support around $112,000 and any pullback is likely to attract buyers.

Bitcoin’s Gains Spill Over to Other Coins

The rise in Bitcoin has lifted other parts of the crypto market. Ether climbed as much as 2.9% Monday, while Solana, Chainlink, and Uniswap also posted gains. Trading volumes across crypto exchanges jumped as traders repositioned for the new week.

Michael Saylor’s firm, Strategy, now holds more than $73 billion worth of Bitcoin, reflecting the continued interest from large institutional holders.

Some Analysts Caution Against Reading Too Much Into the Rally

Not everyone agrees this move is about long-term fundamentals. Some see it as a market event driven by forced buying and a favorable policy window.

“This isn’t purely about macro conditions,” said Nicolai Sondergaard, a research analyst at Nansen. “The U.S. is running a big fiscal deficit and there’s talk of easier monetary policy, but this rally has mostly come from crypto-specific events like ETF demand and traders getting squeezed.”

Still, with Bitcoin up 30% so far in 2025—on top of more than doubling last year—the market has remained resilient even as other risk assets have slowed down.

Also Read: 2 Cryptos Everyone’s Watching: Sky-High Prices, Bigger Risks