Bitcoin Surges Past $120,000 Mark with BlackRock ETF Investors Joining In

The world’s largest cryptocurrency, Bitcoin, surged past $120,000 to hit a new all-time high of nearly $123,000 early Monday morning, with a 3% daily jump and a weekly gain of over 12%, according to data from Binance. This surge follows recent highs after staying below $110,000 for more than a month, setting new records amid a stock market rally.

The rise in Bitcoin's price is driven by increased demand from institutional investors, who prefer investing in crypto through digital asset products offered by established Wall Street firms. BlackRock's crypto ETFs attracted over $2.4 billion in the past week, as per data from CoinShares.

Meanwhile, Ethereum, the second-largest cryptocurrency, climbed nearly 3% in a day to surpass $3,000, marking a 20% increase in the past week. However, the total market capitalization of all digital assets slightly decreased by 0.5% to about $3.87 trillion.

Crypto ETFs saw a significant inflow of $3.7 billion last week, the second-largest week on record, according to CoinShares. James Butterfill, head of research at CoinShares, attributed the rising demand for Bitcoin to political developments and signals from the Federal Reserve.

The Federal Reserve's release of minutes from its June meeting indicated a potential interest rate cut this year. Positive political developments in Congress, including the upcoming votes on the GENIUS Act and the CLARITY Act, have also boosted investor sentiment towards crypto assets.