Bitcoin surges past $121K, hitting a new all-time high with a 24-hour increase of 1.76%.

This historic milestone comes just before the highly anticipated Crypto Week, a period of growing interest and activity in the cryptocurrency market.

A combination of factors, such as strong spot buying, bullish chart patterns, and regulatory optimism, has driven the rally.

The pioneer crypto asset spent several days in a pattern of oscillating above $100,000. Optimism regarding Trump’s administration’s pro-crypto agenda had been dampened by worries about his political and economic policies. Bitcoin has now started to rise again as other risky assets, like stocks, have returned to near-record highs.

Institutional interest in BTC has also risen, as shown by two consecutive days in which spot ETFs saw inflows of over $1 billion. BlackRock’s IBIT alone attracted $953 million last Friday, pushing the total ETF assets under management above $140 billion.

The increased acceptance of the digital asset as a store of value, especially amid positive foreign exchange dynamics and concerns over sovereign debt, has fueled this institutional inflow. The U.S dollar index has lost 10.1% so far this year, making it easier for Bitcoin to be viewed as a long-term asset for treasury diversification.

The US House of Representatives will start discussing a number of cryptocurrency bills that seek to give the digital asset sector a more transparent regulatory framework. The industry had long pushed for the policy, which President Donald Trump, who is active in multiple cryptocurrency projects, positioned himself as a pro-crypto leader.

Bitcoin’s institutional buyers likely view this risk as manageable and continue to hold their positions, believing the cryptocurrency will appreciate over the long term.

Investors have been expecting Bitcoin to reach new heights this year as corporate treasuries increase their purchases, and the US Congress nears approval of new crypto legislation.

However, Trump’s trade disputes with countries like the EU, Mexico, and others could cause dips in the coming week.

Whale wallets have been heavily accumulating BTC behind the scenes, as shown by the decline in exchange reserves from 3.25 million to 2.55 million BTC.

Large holders have been transferring significant amounts of Bitcoin to personal wallets, demonstrating an unprecedented level of conviction that is reflected in this decrease in circulating supply. Exchange inflows have slowed, while transactions exceeding $100,000 have increased, indicating a shift from speculation to accumulation.

Bitcoin’s technical outlook remains bullish after completing one of the largest cup and handle patterns seen across multiple cycles. The next target is the 1.618 Fibonacci extension at $127,600, with a potential move toward $150,000–$160,000.

The Relative Strength Index (RSI) stands at 75.5, a level historically associated with both strong rallies and brief pullbacks. Still, institutional inflows help stabilize the price at high RSI levels, reducing the risk of a major crash.

A major policy shift has occurred as the US government announced the establishment of a Strategic Bitcoin Reserve, officially recognizing Bitcoin as a sovereign asset class.

This move is expected to encourage further institutional adoption and possibly prompt other G20 countries, especially those seeking alternatives to dollar reserves, to follow suit.

This move is expected to encourage further institutional adoption and possibly prompt other G20 countries, especially those seeking alternatives to dollar reserves, to follow suit.

With central bank gold purchases nearing capacity, Bitcoin is well-positioned to fill the hard-money gap in the coming decade.