Bitcoin achieved a significant milestone, surpassing the $118,000 mark. This surge is primarily attributed to enhanced regulatory clarity in the United States and increased participation from institutional investors.
Key regulatory developments have bolstered market confidence, notably including the approval of cryptocurrency investments within 401(k) retirement plans. Positive shifts in policy from the U.S. Securities and Exchange Commission (SEC) were also cited as major contributing factors. This growing institutional engagement has led to a substantial increase in trading volumes on major exchanges.
Concurrent with the rally, long-term holders are increasingly realizing profits, which has contributed to heightened market liquidity. Activity in the derivatives market reflects this momentum, with Bitcoin’s futures open interest reaching a record $120 billion, signaling robust market participation.
Analysts highlight Bitcoin’s realized market cap exceeding $1 trillion as a key indicator of underlying market strength and long-term holder conviction. This metric suggests a solid foundation supporting the current price levels despite profit-taking activity.