Bitcoin (BTC/USD) reached a new all-time high by surpassing $118,000 on Friday, continuing an exceptional week for the cryptocurrency. Bitcoin was trading at $118,111, up 6.3% over 24 hours, after peaking at $118,740 earlier in the session.
This bullish rise is supported by expectations of a Federal Reserve interest rate cut in September, inflows into instant cryptocurrency ETFs, as well as a more favorable regulatory environment.
According to Dillian Wu, a strategist at Pepperstone, it is only a matter of time before Bitcoin surpasses the $120,000 mark, especially in the lead-up to Congress's review of several legislative proposals regarding digital assets.
The House of Representatives is set to consider three key pieces of legislation:
The CLARITY Act, which aims to establish a clear regulatory framework for digital currencies,
The Genius Stablecoin Bill, which regulates fiat-backed tokens such as the dollar,
The Anti-State Surveillance Law for Central Bank Digital Currency, designed to prevent the Federal Reserve from issuing a Central Bank Digital Currency (CBDC) to retail customers.
Wu believes that if this legislative momentum is maintained, ETF fund inflows continue, and the Federal Reserve adopts an accommodative tone, then a return of Bitcoin to $120,000 before August is entirely reasonable.
Ryan Li, an analyst at Bitget Research, expects this threshold to be surpassed as early as the end of July.
Other cryptocurrencies also surged sharply on Friday: Ethereum (ETH) by 7.4%, Solana (SOL) by 4.7%, and XRP by 10%.