Bitcoin breaks $120,000 barrier as institutional demand and US ‘Crypto Week’ drive historic rally

Bitcoin soared past the $120,000 mark for the first time on July 14, 2025, hitting an intraday high of $122,600 during Asian trading. The dramatic surge comes amid record-breaking institutional investment, growing optimism around US crypto regulation, and a wave of retail and corporate enthusiasm.

ETFs and institutional momentum fuel rally

One of the key drivers of the surge has been record inflows into Bitcoin exchange-traded funds (ETFs). According to CNBC data, Bitcoin ETFs attracted $1.18 billion in a single day last week—their largest inflow of 2025 so far. As a result, Bitcoin's market capitalization now stands at approximately $2.38 trillion, with daily trading volume rising 19% to $54.4 billion.

Jeff Mei, COO of crypto exchange BTSE, highlighted the importance of long-term institutional interest:
"We believe that Bitcoin’s surge is driven by longer-term institutional buyers, and this will propel it to $125,000 in the next month or two."

US ‘Crypto Week’ and regulatory clarity add fuel

The rally also coincides with “Crypto Week” in the US Congress, a series of legislative sessions aimed at providing clearer regulatory frameworks for digital assets. Two key bills—the Genius Act and the Clarity Act—are under discussion, addressing stablecoin issuance and central bank digital currency guidelines.

President Donald Trump, who has positioned himself as a pro-crypto leader, has publicly endorsed efforts to support the digital asset ecosystem, adding to investor confidence. George Mandres of XBTO Trading noted,
"The latest movement signals a maturing perspective on Bitcoin—not merely a speculative asset, but a macro hedge and a structurally scarce store of value."

Retail and corporate excitement add to momentum

Bitcoin’s momentum isn’t limited to institutions. Retail traders are highly active, with message volume on platforms like Stocktwits hitting record highs. Corporations are also buying in: Japanese hotelier Metaplanet recently added 797 Bitcoins to its holdings, bringing its total to 16,352 BTC—making it the fifth-largest corporate holder globally.

Altcoins rise as crypto market cap nears $4 trillion

Ethereum followed suit, reaching a five-month high of $3,048.23, as the broader crypto market capitalization climbed to $3.78 trillion. Open interest is rising across the board, with bullish bets targeting $120K, $140K, and even $150K Bitcoin strike prices in the months ahead.

What’s next?

While some analysts caution that short-term volatility may follow—especially with the US stepping up trade tensions—most agree that the institutional base is solid. If Bitcoin can hold its ground above $120,000, technical experts believe a breakout to $135,000–$140,000 could happen quickly.