Bitcoin Breaks $121K Barrier Amid Soaring Institutional Demand and U.S. Policy Shift

Bitcoin has surged to a new all-time high, breaching $121,000 with a 24-hour increase of 1.76%, fueled by a combination of strong spot buying, favorable technical indicators, and growing regulatory optimism. The timing of this milestone coincides with the upcoming Crypto Week, which is expected to amplify global attention toward digital assets.

A significant driver of this rally is the influx of institutional capital. BlackRock’s IBIT alone pulled in $953 million in a single day, contributing to over $1 billion in total ETF inflows for two consecutive sessions. These inflows have pushed total assets under management for Bitcoin ETFs above $140 billion. Institutional buyers are viewing Bitcoin as a hedge against the depreciating U.S. dollar, which has lost over 10% of its value this year, and a viable asset for treasury diversification.

On the regulatory front, the U.S. House of Representatives is preparing to debate crypto-specific bills that would clarify the legal framework for digital assets. President Donald Trump has adopted a pro-crypto stance, and his involvement in several blockchain ventures has fueled investor optimism. At the same time, the government has announced the creation of a Strategic Bitcoin Reserve—formally recognizing Bitcoin as a sovereign asset class.

Behind the scenes, whale wallets have been accumulating Bitcoin aggressively. Exchange reserves have dropped from 3.25 million to 2.55 million BTC, indicating a shift from speculation to long-term holding. Large transactions exceeding $100,000 have increased, suggesting strong confidence among major investors despite geopolitical uncertainties, including trade tensions with the EU and Mexico.

Technically, Bitcoin’s chart remains bullish, having completed a massive “cup and handle” formation. Analysts are now eyeing the next key resistance at $127,600 and projecting potential highs of $150,000 to $160,000 in the medium term. The RSI currently sits at 75.5—typically signaling an overbought condition, but continued institutional inflows may sustain momentum and reduce the likelihood of a steep correction.

Source: Nairametrics