Where is Bitcoin heading as prices hit record $120,000?

US-led policies have helped investors to take cryptocurrencies more seriously

Bitcoin is witnessing more participation from institutional investors. AP

Bitcoin is expected to go higher after reaching record levels as US-led policies, and the Trump hype, give credence and "structure" to the digital asset, analysts said.

The world's biggest cryptocurrency hit another milestone on Monday, topping the $120,000 mark, amid heightened flows into Bitcoin exchange traded funds. That indicates a new level of seriousness from investors.

"What we’re seeing now is sustained interest, supported by structural inflows, rather than short-term speculation," said Josh Gilbert, a market analyst at digital investment platform eToro.

Is $150,000 within sight?

Bitcoin passing $120,000 signals a sustained bullish trend heading into the third quarter of 2025, with the cryptocurrency projected to average about $125,000, said Ryan Lee, chief analyst at Bitget Research.

With analysts expecting a trading range of between $105,000 and $150,000, the key levels are $108,500 for support and $130,000 for resistance, "serving as critical markers for momentum confirmation", he added.

But Bitcoin's rise will hit some bumps, as "investments of this magnitude don’t move in straight lines", said Nigel Green, chief executive of wealth management company deVere Group.

"They surge, cool, consolidate, then break out again. That’s the phase we’re entering," he said. “The trajectory to $150,000 is intact, but investors should expect a sharp move to $140,000, then a healthy sell-off before we power higher."

A correction may also be due. The Crypto Fear and Greed Index, used to measure the mood of the market, is at 70, indicating "greed".

That means it is now back in overbought territory, suggesting a correction to the $105,000 to $110,000 range "wouldn’t be surprising", said Ipek Ozkardeskaya, a senior analyst at Swissquote Bank. "Still, the rally is underpinned by a crypto-friendly US policy shift and growing emerging market adoption – [and] both remain intact."

Who is buying Bitcoin?

Bitcoin is witnessing more participation from institutional investors, such as hedge funds and mutual funds, Mr Gilbert said.

"Publicly traded companies are now adopting Bitcoin as part of their treasury strategy, with some making multibillion-dollar allocations," he added. "At the same time, retirement funds and sovereign wealth funds are starting to gain exposure through ETFs [exchange-traded funds], adding to the wave of demand chasing a fixed supply. This is the first real bull market where institutional participation is front and centre."

US policy wins

US President Donald Trump, a former crypto sceptic, is now championing digital assets. His influence and promises – both in the political and personal spheres – started the resurgence of the sector.

That has resulted in his administration pushing for more crypto-friendly regulations. This week, the US House of Representatives will tackle key bills aimed at further regulating the cryptocurrency market.

Crypto enthusiasts are hopeful that the Clarity Act, Anti-CBDC Surveillance State Act and Genius Act will be passed, which are expected to bring "some much-needed structure to the Wild West of digital assets", said Devika Mittal, regional head at Web3 company Ava Labs.

"It's a bold move that demonstrates how far we've come from the days when cryptocurrency was viewed as a fringe investment. The timing couldn't be better, as countries like Vietnam are starting to embrace crypto themselves, following America's lead in the global digital economy."

That also bodes well for Wall Street, where companies have been awaiting clearer rules. These bills could finally give them the confidence to dive in – in addition to protecting every day investors from scams and sketchy practices, Ms Mittal added.

"Instead of treating crypto with suspicion, lawmakers are now actively working to help the industry thrive while keeping it transparent," she added. "It's a remarkable turnaround that could reshape our understanding of digital assets and blockchain."

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Among those bills, the Genius Act is expected to create a federal framework for stablecoins, one of the most significant regulatory steps the US has taken to date.

“This is not crypto on the fringe any more. This is front and centre of US financial policy. Trump is championing it, lawmakers are acting on it and Wall Street is all-in,” Mr Green said.