Bitcoin soared above $122,000 on Monday, setting a new all-time high and cementing its position as 2025's best-performing asset, as U.S. lawmakers prepared to debate three major cryptocurrency bills that could alter the regulatory landscape for digital assets.
The world's largest cryptocurrency was recently trading just above $121,000, up 30% year-to-date-outpacing the S&P 500 and surpassing gold in returns. The surge comes amid "Crypto Week" in Washington, where the House of Representatives is slated to vote on legislation that could legitimize private stablecoins and clarify rules for digital asset markets.
The bullish momentum sent crypto-tied stocks higher in premarket trading. Shares of Strategy (MSTR), known for its bitcoin treasury strategy, rose about 3%. Crypto miners MARA Holdings (MARA) and Riot Platforms (RIOT) gained 4.5% and 4%, respectively, while Coinbase Global (COIN) was up 1.5%. Ether (ETHUSD), the second-largest cryptocurrency, traded above $3,000, buoyed by bitcoin's rally.
The rally has intensified speculation within the crypto community, with price targets for bitcoin now ranging from $140,000 to $200,000. But some analysts are urging restraint amid the exuberance. Marcin Kazmierczak, co-founder of blockchain oracle Redstone, stated: "While some analysts project $130-140K targets, history teaches us that parabolic moves often invite sharp corrections." He added, "The industry's maturation is real, institutional infrastructure, regulatory clarity, and use cases are all advancing. Yet this very maturation demands we approach these milestones with professional discipline rather than euphoria."
Kazmierczak pointed out the market's lack of a significant pullback in more than 47 days and highlighted that "more than $276m in leveraged positions were liquidated in the last 24 hours alone, reminding us that volatility remains bitcoin's constant companion."
Options markets reflected this cautious sentiment. Data from Deribit shows that one-month risk reversals-measuring the pricing differential between bullish calls and bearish puts-were flat, suggesting traders are hesitant to make aggressive bullish bets at record highs. However, QCP Capital, a Singapore-based crypto firm, reported that "September and December risk reversals continue to show a firm bid for calls, which could indicate a preference to hedge against short-term volatility while maintaining a longer-term bullish outlook."
Congressional focus this week includes the GENIUS Act, which would allow private companies to issue stablecoins backed by state currencies, and the Digital Asset Market Clarity Act, which aims to establish a regulatory framework for crypto. Lawmakers are also set to debate the CBDC Anti-Surveillance State Act, which would prevent the Federal Reserve from issuing a central bank digital currency.
Kazmierczak emphasized, "The real opportunity lies not in speculative trading, but in building the infrastructure for programmable money and asset tokenization."
