Bitcoin has extended its breakout to a new record high of $122,000 on Monday, triggering a widespread cryptocurrency rally as ETF capital flows in, short positions are liquidated, and optimism about policy from Washington continues to drive bullish sentiment.
Ether (ETH) has surpassed the $3,000 mark, supported by an ETF capital flow of $383 million on Friday. Major tokens surged over the past week thanks to BTC's strength.
XRP is trading near $2.95, up 30% weekly, Solana's SOL has regained the $167 level, and Dogecoin surged more than 20%, driven by the rotation of retail investors and discussions about memecoins.
This reflects patterns observed in previous cycles, where the BTC rally acts as a liquidity boost for the market as a whole. If macroeconomic conditions are maintained and Bitcoin stabilizes above $120,000, large-cap altcoins are likely to continue appreciating in the coming weeks, according to trader assessments.
As the United States kicks off 'Cryptocurrency Week' in Congress, a series of hearings aimed at turning the U.S. into the 'cryptocurrency capital of the world,' traders are preparing for favorable legislative moves.
Augustine Fan, Head of Analysis at SignalPlus, stated in a Telegram message: 'Cryptocurrency prices are benefiting from a surge frenzy as BTC trades up to a high of $118,000, liquidating over $1 billion in short positions.'
Fan added: "Market sentiment is likely to remain buoyant until summer, with the only real risk catalyst being a complete failure of trade negotiations, but the President will decide how strongly he wants to push his current policies."
Strong on-chain support at $109,000, along with cross-flow of capital from stocks to digital assets, is giving buyers more confidence. As Eugene Cheung, CCO at OSL, noted: 'The trend remains bullish. We could see Bitcoin testing the $130,000–$150,000 level by the end of the year if macro factors are favorable.'
Meanwhile, futures indices in the U.S. and Europe fell early Monday after Trump announced a 30% tariff on goods from the European Union and Mexico, escalating trade tensions that had already destabilized Brazil, Algeria, and Canada last week.
S&P 500 futures fell 0.4%, while European Stoxx 600 futures declined 0.6% as of this morning in Asia. Silver prices have risen near their highest levels since 2011, indicating that the market is interested in hard assets.
