The worth of a single bitcoin surpassed $120,000 early Monday, the newest file worth for the digital token that has set a number of all-time highs in latest weeks amid bullishness about developments on Capitol Hill and considerations about inflation and the U.S. greenback’s declining worth.
As a result of it stays susceptible to giant worth swings, bitcoin’s trajectory tends to trace that of riskier belongings like tech shares — though it has outperformed these soundly in 2025. 12 months thus far by Friday, solely gold — up 27.7% — has outperformed bitcoin, up 25.9%. By comparability, the tech-focused Nasdaq 100 index has gained 8.7%, whereas the broad S&P 500 has climbed 7%.
Early Monday morning, the almost 20 million particular person bitcoins in existence are price a mixed $2.4 trillion, making all the asset class the world’s fifth-most worthwhile, surpassing Amazon and shutting in on Apple, in accordance with crypto information web site CoinTelegraph.com. Apple had a $3.1 trillion market valuation as of Monday morning.
Most of this 12 months’s features have come prior to now few weeks. They have been fueled by a number of things, together with the partial pause in President Donald Trump’s commerce battle and the passage of his tax lower and spending invoice, which, on stability, cuts taxes whereas additionally growing the U.S.’s debt — each bullish for elevated bitcoin funding.
The greenback’s declining worth relative to different currencies has additionally made bitcoin a extra engaging asset to personal as a hedge amongst worldwide buyers in opposition to potential adjustments to the greenback’s standing as reserve foreign money.
Lastly, there’s been elevated curiosity amongst giant monetary companies in crypto thanks partially to crypto-focused laws.
Certainly, the GOP-led Home of Representatives has declared this week “crypto week” because it takes up three totally different payments associated to regulating digital belongings, together with the GENIUS Act, which might make clear how firms can challenge their very own digital tokens. In accordance with Reuters, Democrats — a lot of whom stay opposed to creating crypto extra mainstream — are anticipated to supply a number of amendments to the payments, although it was unclear whether or not any would achieve success.
Crypto’s latest uplift has added some $620 million to Trump’s estimated internet price, Bloomberg reported earlier this month. Some Democrats see these features as purpose sufficient to oppose laws that may pave the way in which for wider crypto adoption.
“These payments would make Congress complicit in Trump’s unprecedented crypto rip-off,” Rep. Maxine Waters of California, the highest Democrat on the Home monetary providers committee, mentioned in a press release.
There’s debate about how a lot larger bitcoin will go the remainder of the 12 months. Its trajectory stays strongly tied to the outlook for international rates of interest. When these are comparatively decrease — as they’ve been just lately — there’s extra money accessible to buy riskier belongings like bitcoin.
However with developed economies which have traditionally stored authorities spending in verify now set to extend funding, rates of interest are more likely to start ramping up in response to inflation considerations,
“The chance that central banks shift focus again to the dangers of re-accelerating inflation could become a possible headwind for Bitcoin within the latter half of the 12 months,” Matthew Weller World Head of Analysis at FOREX.com mentioned in a word revealed earlier this month, “particularly with fiscal coverage (authorities spending and tax cuts) changing into extra accommodative.”
