Bitcoin soared to a new all-time high above $120,400 on Monday, extending its explosive rally as Crypto Week 2025 kicks off.

The sudden breakout has doubled the cryptocurrency’s value in the past year, driven by renewed institutional interest, favorable policy winds and growing excitement around upcoming legislation in the US.

It last traded at $120,492 as of press time, and is up over 14% in the last month.

The latest surge sent shockwaves across the crypto market. According to CoinGlass data, more than $276m in leveraged positions were liquidated in the last 24 hours alone.

Of that, $183m came from short traders caught off guard by Bitcoin’s sharp climb. Liquidations in Bitcoin totaled $83.85m, followed by $49.54m in Ethereum. Several altcoins, including XRP, XLM and Solana, also faced heavy liquidations as price swings intensified across the market.

In the past day, nearly 100,000 traders were wiped out, with the largest single liquidation order taking place on Bybit for the BTC-USDT pair, worth $2.86m. Overall, short sellers bore the brunt, with more than 91% of all liquidated positions skewed to the downside.

Investor optimism has grown in anticipation of Crypto Week, set to begin July 14. Lawmakers in the US House of Representatives will review three major crypto bills — the CLARITY Act, the GENIUS Act and the Anti-CBDC Surveillance State Act. The outcome could reshape the legal foundation of digital assets in the world’s largest economy.

Lawmakers on both sides of the aisle, along with the Trump administration, are backing the push for clearer crypto rules. If the bills pass, they could reshape how digital assets are regulated in the US, with ripple effects on markets, big investors and the country’s role in global finance.

Despite some lawmakers pushing back through an “Anti-Crypto Corruption Week” campaign, broader sentiment remains bullish.

The total crypto market capitalization now stands at $3.86 trillion, supported by ETF inflows and Ethereum’s move back above $3,000. Altcoins like ADA and XRP have also shown strength, lifting market confidence.

Meanwhile, decentralized finance is gaining fresh momentum. Last week, the total value locked across DeFi protocols jumped by more than $20b. As a result, the sector’s TVL now stands at roughly $176b. This surge reflects growing trust in on-chain financial solutions.

Traders are now watching key macro and political developments. Bitcoin’s resilience in the face of new US tariffs has surprised many analysts, who point to a maturing market.

With ETF demand rising and legislative clarity in sight, some believe this breakout may mark the start of a longer-term uptrend.

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