Bitcoin Surpasses $120,000

SadaNews - The "Bitcoin" currency has reached the level of $120,000 for the first time, with investor optimism increasing nearly daily after it emerged from a narrow trading range that raised doubts about its ability to regain the record momentum it experienced at the beginning of the year.

After a surge following Donald Trump's election for a second presidential term in the United States, "Bitcoin" stabilized within a pattern of volatility around the $100,000 mark for several months. Concerns about Trump's trade and economic policies have suppressed optimism regarding his pro-cryptocurrency agenda. Now, with other risky assets like stocks returning to record levels, "Bitcoin" has resumed its upward trajectory.

From Speculation to a Hedge Tool

George Mandris, chief trader at "XBTO Trading," stated: "This shift represents a mature outlook towards Bitcoin; it is no longer just a speculative asset but has become a structural store of value and a complete hedge tool."

He added: "The surge in risk appetite in the stock market, along with large institutional inflows into spot Bitcoin and Ethereum funds, are factors that fueled this steady rise, which has been devoid of the severe volatility typical of previous bull runs."

The leading cryptocurrency rose by 1.9% to reach $121,344, currently up about 30% since December. "Bitcoin" had doubled its value last year.

Anticipation for Crypto Week

The recent increase is also supported by the liquidation of bearish bets on cryptocurrencies over the weekend, where traders who bet on the decline of "Bitcoin" suffered heavy losses, wiping out more than a billion dollars from short positions, according to data from "CoinGlass."

The rise of the cryptocurrency comes amid anticipation for a week that a committee in the U.S. Congress has dubbed "Crypto Week", which is expected to witness discussions and possibly voting on key legislation concerning cryptocurrencies.

However, some analysts remain unconvinced of the sustainability of the currency's ascent. Nikolai Sondergaard, a research analyst at "Nansen," said: "In my opinion, this is not a rise driven by macro factors, but an isolated event."

He added: "Nonetheless, the recent developments in U.S. policy, such as fiscal expansion and expectations of more monetary easing, have undeniably provided a favorable backdrop for Bitcoin."