Bitcoin soared to a record-breaking $123,000 on Monday, driven by increasing political momentum and institutional backing for cryptocurrency in the United States. The surge comes as Washington kicks off “crypto week,” a coordinated effort by the Trump administration to anchor digital assets within the American financial system.
The world’s largest cryptocurrency has now gained over 30% since the beginning of the year, fueled by rising demand for bitcoin-linked exchange-traded funds (ETFs) and expectations of clearer regulatory frameworks. Investor confidence has been bolstered by renewed legislative efforts and the White House’s growing endorsement of the sector.
This week, lawmakers in the US House of Representatives are expected to debate the Genius Act—a landmark bill that would allow traditional banks to issue their own stablecoins, digital currencies pegged to fiat money like the US dollar. If approved, the measure could dramatically reshape how crypto is adopted in the mainstream economy.
The potential regulatory breakthrough has already sparked a flood of capital. Data from Farside Investors shows bitcoin investment products attracted $3.4 billion in fresh inflows recently, including a staggering $2.2 billion over the past two days alone—both setting new records.
President Donald Trump has taken a distinctly pro-crypto position in recent months, branding digital currencies as a cornerstone of American technological leadership. His administration’s enthusiastic support marks a sharp departure from years of ambiguity that have weighed heavily on the crypto industry.
Despite the enthusiasm in Washington, central banks remain cautious. Bank of England Governor Andrew Bailey voiced concern over the proliferation of privately issued stablecoins. “I would much rather commercial banks did not issue their own stablecoins,” Bailey told The Times, warning that such instruments could present systemic financial risks. The global stablecoin market already exceeds $200 billion.
Still, major financial institutions appear undeterred. JP Morgan confirmed it is moving forward with plans for a dollar-backed stablecoin, JPMD, while other global banks are reportedly in talks to develop joint stablecoin ventures.
Amalia Neenan FitzGerald, associate at London-based law firm Peters & Peters, said regulation is key. “Stablecoins have long posed cross-border regulatory challenges,” she said. “Now, they are finally being addressed in a meaningful way. Whether the framework proves sustainable remains to be seen—but the legitimacy it brings is critical for the sector’s future.”
Elsewhere in global markets, the pound slipped 0.2% to $1.34 following Bailey’s suggestion of possible further interest rate cuts. Gold remained near record highs amid fears of a trade conflict, with President Trump threatening a 30% tariff on EU and Mexican imports. Meanwhile, French and German bond yields edged toward levels last seen during the eurozone debt crisis, signaling investor unease.
With Washington’s crypto stance shifting dramatically, this week’s developments could prove decisive not only for bitcoin’s trajectory but for the future architecture of the global financial system.
