Driven by Trump’s Re-election, ETF Momentum, and a Risk-On Market, Bitcoin Gains 30% Since December with Analysts Split on What’s Next
Bitcoin Breaks New Ground, Surging to $121,344 as Market Sentiment Shifts
Bitcoin has smashed through the $120,000 mark for the first time, climbing as high as $121,344 with a 1.9% gain, and marking a 30% rally since December. The surge comes on the heels of Donald Trump’s re-election to a second U.S. presidential term, a political event that has reignited investor enthusiasm across both crypto and traditional markets.
While Trump’s pro-crypto stance continues to attract institutional interest, uncertainty surrounding his broader economic policies had earlier led Bitcoin to oscillate around the $100,000 threshold for months. Now, as equities reach record highs and fiscal sentiment turns bullish, Bitcoin is resuming its upward trajectory with a quieter, more deliberate momentum than past cycles.
“This shift signals a maturing perspective on Bitcoin — not merely a speculative asset, but a macro hedge and a structurally scarce store of value,” said George Mandres, senior trader at XBTO Trading LLC. He attributes the rally to an influx of institutional capital into spot Bitcoin and Ethereum ETFs, combined with a broader “risk-on” sentiment in global markets.
The sharp move upward was further amplified by the forced liquidation of bearish crypto positions. According to Coinglass, over $1 billion in short positions were wiped out in a matter of days — accelerating Bitcoin’s rise and leaving doubters behind.
Adding fuel to the fire is the anticipation surrounding what Capitol Hill has dubbed “Crypto Week.” U.S. lawmakers are expected to debate, and potentially vote on, pivotal cryptocurrency legislation that could shape the next era of digital asset regulation. This has further solidified investor confidence in Bitcoin’s regulatory and institutional future.
Still, not all market participants are fully convinced. “In my view, this isn’t a macro-driven rally, but rather an isolated event,” said Nicolai Sondergaard, research analyst at Nansen. He acknowledged, however, that current U.S. fiscal expansion and signals of future monetary easing are undeniably favorable for Bitcoin’s mid-term outlook.
With Bitcoin’s market capitalization surpassing $2.2 trillion and options traders now eyeing the $300,000 mark, the question isn’t whether crypto is back — it’s how far it will go from here.
Whether Bitcoin continues its measured climb or returns to its characteristic volatility, one thing is clear: the digital asset is no longer just a fringe bet — it’s a major player in the global financial system.
