Bitcoin reaches historic highs... What are the reasons?
Bitcoin continued its strong gains on Monday, breaching the $120,000 barrier for the first time in its history, amid an accelerating upward trend driven by increased inflows into cryptocurrency-linked exchange-traded funds (ETFs).
This rise, at the start of Crypto Assets Week in the United States, reflects improved investor confidence in digital assets, supported by expanding institutional demand and the growing official adoption of digital currencies in global financial markets.
It also strengthens Bitcoin's position as a major digital asset in investment portfolios and opens the door to a new wave of bets on higher levels in the near term. With the currency surpassing the $120,000 barrier, attention is turning to the market's ability to maintain this level, amid warnings of a potential correction, especially in light of the historically sharp volatility of cryptocurrency prices.
The price of the largest cryptocurrency by market capitalization reached 121,740.00 in the latest trading session (by 2:00 PM Dubai time). Bitcoin's price surge comes amid increasing inflows into Bitcoin exchange-traded funds (ETFs).
On Thursday, Bitcoin ETFs recorded their largest daily inflows in 2025, at $1.18 billion.
"We believe the Bitcoin price rally is being driven by long-term institutional buyers, and this will push it to $125,000 in the next month or two," Jeff Me, chief operating officer of cryptocurrency exchange BTSE, told CNBC.
He added, "Trump's trade disputes with the likes of the European Union, Mexico, and other trading partners could cause declines next week, but institutional buyers of Bitcoin are likely to ignore this risk and maintain their position that Bitcoin will continue to rise over the long term."
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