Bitcoin Breaks $120K: Institutional Support, Macro Tailwinds, and Regulatory Clarity Fuel Rally
Cryptocurrency markets rallied on easing regulatory risks, geopolitical optimism, and supportive U.S. policy shifts. Clearer integration plans from the SEC, hopes for progress in Ukraine talks, and policy changes allowing crypto in 401(k) plans have all boosted sentiment.
Cryptocurrencies Surge
Bitcoin has surged past $120,000, Ethereum is trading above $4,000, and Ripple has crossed $3.20 – raising the question: is the rally sustainable, or are we witnessing a bubble?
Harvard University Invests in Bitcoin
Institutional adoption continues to deepen. Harvard University, through its endowment fund, invested $116 million in a spot Bitcoin ETF during Q2 – its fifth-largest holding. This move, analysts say, further legitimises Bitcoin as a store of value. “If Harvard endorses it, other institutional investors will follow, boosting liquidity,” noted market observers.
BTCUSD daily chart, August 11, 2025. Source: TenTrade.com
Macro factors also favor upside potential. With U.S. money supply (M2) estimated at $23–24 trillion and Bitcoin’s market cap at roughly $2.5 trillion – around 11% of M2 versus gold’s 22% – analysts argue there’s room for Bitcoin to grow in relative valuation.
Cryptos Said to be Integrated into Traditional Financial System
Regulatory risks have also begun to fade after Chair of the Securities and Exchange Commission (SEC), Paul S. Atkins, outlined how cryptocurrencies will be integrated into the traditional financial system, a speech that many believe will gradually support higher valuations.
Geopolitical Optimism Drive Bitcoin Surge
Recent geopolitical developments have added fuel to the rally. Hopes for a resolution to the Ukraine war following an upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin have spurred buying. In the last 24 hours, short squeezes have wiped out more than 92% of Bitcoin short positions.
U.S. Policy Changes Boost Crypto Market Confidence
U.S. policy shifts last week also contributed. On Thursday, President Trump signed an executive order allowing cryptocurrencies, private equity, and real estate in 401(k) plans. Days earlier, the SEC clarified that liquid staking activities do not constitute securities offerings, which is a step toward clearer crypto regulation.
Bitcoin and the broader crypto market may still have growth potential, as upcoming advances in crypto integration within the financial system may not yet be fully reflected in current prices.
Key Takeaways
- Bitcoin’s market cap is about 11% of U.S. M2 money supply, compared to gold’s 22%, suggesting room for growth.
- SEC Chair outlined plans to integrate crypto into the traditional financial system.
- Hopes for progress in Ukraine talks and major Bitcoin short squeezes have boosted buying.
- U.S. policy changes now allow cryptocurrencies in 401(k) plans and clarified that liquid staking is not a securities offering.
- Advances in crypto integration may not yet be fully priced into the market.
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