Bitcoin Breaches $120K as Funds Pour In

TDT | Manama

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Bitcoin has crossed the USD 120,000 mark for the first time, propelled by a wave of institutional investment that analysts say is driving the first truly mature bull market in the cryptocurrency’s history.

Bitcoin hitting USD 120,000 means one bitcoin now trades for that amount in US dollars, reflecting its rising market value as a digital asset.

Fuelled by robust inflows into exchange-traded funds (ETFs) and strategic allocations by large public and private institutions, the world’s largest cryptocurrency is now firmly positioning itself as a mainstream asset class.

Institutional traction

Josh Gilbert, Market Analyst at eToro, said the ongoing surge reflects a shift from retail speculation to structural demand. “Institutional adoption is growing, and this is the first real bull market where institutional participation is front and centre,” he said, pointing to major corporations adding bitcoin to their treasuries and sovereign funds entering the space through regulated investment products.

Retirement plans, sovereign wealth funds, and asset managers are now actively investing in bitcoin ETFs, making multi-billion-dollar entries into a market defined by finite supply. Gilbert added that this persistent demand is a key driver behind bitcoin’s sustained rally.

Macro conditions align

Loose global monetary policy and rising money supply continue to make a compelling case for bitcoin’s appeal as a decentralised, fixed-supply asset. Gilbert explained that in such conditions, bitcoin is “cementing itself as an alternative store of value.”

While the crypto market has seen dramatic climbs in previous cycles, the current bull run is distinguished by its fundamental strength and breadth of participation, rather than hype.

Retail yet to peak

Despite the record prices, analysts believe the retail segment is still far from saturation. Gilbert noted that mainstream adoption remains in its early stages and that bitcoin is still an emerging component in diversified portfolios. “This is just the beginning of widespread adoption, seamless integration with traditional finance, and robust regulatory frameworks,” he said.

With increased trust, improving regulations, and global financial integration, analysts expect the upward momentum to continue well into the second half of 2025.