Bitcoin Surges Past $120,000 as ‘Crypto Week’ Kicks Off in Washington
U.S. Lawmakers Signal Robust Crypto Legislation, Boosting Market Confidence
July 30, 2025 – Bitcoin, the world’s largest cryptocurrency by market capitalization, soared past $123,000 before settling at approximately $119,800 on Tuesday, fueled by unprecedented institutional demand and optimism surrounding U.S. legislative developments. The rally coincides with the start of ‘Crypto Week’ on Capitol Hill, where lawmakers are poised to discuss transformative crypto legislation.
Institutional Demand Drives Bitcoin’s Rally
The surge in Bitcoin’s price is largely attributed to significant inflows into Bitcoin exchange-traded funds (ETFs). On Thursday, Bitcoin ETFs recorded their largest single-day inflow of 2025, amassing $1.18 billion, according to Coin Metrics. Analysts suggest that institutional investors are increasingly viewing Bitcoin as a long-term asset, with Jeff Mei, COO of cryptocurrency exchange BTSE, predicting a climb to $125,000 within the next two months. “Long-term holders are locking up supply, while global policy clarity boosts investor confidence,” said Xu Han, director of the Liquid Fund at HashKey Capital.
‘Crypto Week’ and Legislative Optimism
The timing of Bitcoin’s rally aligns with ‘Crypto Week,’ a series of congressional discussions aimed at shaping the future of digital assets in the U.S. Recent posts on X highlight the passage of the GENIUS and CLARITY Acts, which aim to provide regulatory clarity for cryptocurrencies and stablecoins. These developments follow President Donald Trump’s pro-crypto stance, including his vow to make the U.S. the “crypto capital of the planet” and the launch of his TRUMP token. The White House is also set to release its first comprehensive crypto policy report, covering stablecoins and consumer protections, further fueling market optimism.
Potential Risks Amid Trade Tensions
Despite the bullish sentiment, analysts warn of potential volatility due to trade disputes initiated by the Trump administration. Tariffs on the EU, Mexico, and other trading partners could trigger risk-off sentiment in global markets, potentially impacting Bitcoin’s trajectory. Markus Thielen, CEO of 10x Research, noted that the U.S. Federal Reserve’s hawkish policies and potential interest rate hikes pose additional risks, though Bitcoin’s institutional backing may cushion short-term dips.
What’s Next for Investors?
With Bitcoin’s market cap approaching $2.34 trillion, investors are closely monitoring altcoins like Ethereum and XRP, which are also gaining traction. The crypto market’s total capitalization has surpassed $3.85 trillion, signaling a robust bull run. For those looking to capitalize on these trends, staying informed about regulatory developments and ETF inflows will be crucial.
