Bitcoin surged 3.4% to $122,084.1 on Monday, inching towards its mid-July record of over $123,000.
The rally extends a rebound from late last week, driven by U.S. President Donald Trump’s executive order allowing retirement funds such as 401(k)s to invest in alternative assets, including cryptocurrency.
The move unlocks a major new channel for institutional inflows, intensifying Wall Street’s exposure to more digital assets. Following the order, U.S.-listed Bitcoin exchange-traded funds recorded three consecutive days of strong capital inflows, underscoring rising investor confidence in crypto as a legitimate asset class.
World No.2 cryptocurrency Ethereum traded firmly above $4,000 after surpassing the mark last week, holding near its 2021 bull-run highs. Broader altcoin prices also advanced, capitalizing on positive sentiment and increased market participation.
While Trump’s pro-crypto stance, including a recent Stablecoin regulatory framework, has buoyed sentiment, analysts note much of Bitcoin’s weekend surge occurred in thin liquidity.
This raises concerns over whether the $122K level will hold without sustained institutional buying.
