Bitcoin crosses $120,000-mark for first time as crypto laws take shape

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Bitcoin crossed the USD 120,000 mark for the first time on Monday, driven by mounting optimism over landmark crypto legislation expected to be debated in the US Congress this week.

The rally comes as lawmakers prepare for "crypto week," a series of House votes on key bills that could shape the regulatory future of digital assets in the United States.

Washington will weigh the Genius Act, aimed at clarifying token classification; the Clarity Act, which proposes jurisdictional roles between the SEC and CFTC; and the Anti-CBDC Surveillance State Act, designed to block any state-backed digital currency seen as invasive.

Bitcoin surged to a record high of USD 123,153.22 before settling near USD 122,000, up 2.4 per cent on the day. 

The token has climbed more than 30 per cent year-to-date, fuelled by expectations of friendlier regulations and vocal support from Donald Trump, who has branded himself the "crypto president."

Bitcoin's steady ascent since Trump's return to politics has also pulled up the broader crypto market.

Ether hit a five-month high of USD 3,059.60, while XRP and Solana rose around 3 per cent. Dogecoin gained nearly 8 per cent, lifted by retail enthusiasm and speculation about its inclusion in campaign donation platforms.

The total crypto market cap has swelled to USD 3.81 trillion, according to CoinMarketCap.

"What we find interesting and are watching closely are the signs that bitcoin is now being seen as a long-term reserve asset, not just by retail investors and institutions but even some central banks," Gracie Lin, Singapore CEO of crypto exchange OKX, told Reuters.

The bills under debate are seen as a turning point for the industry, which has long demanded clearer US regulation.