Bitcoin Surges 75% to $123,000 Ahead of US Crypto Week

Bitcoin's recent surge past $123,000 has been a significant event in the financial world, marking a 75% rise from November. This rally has prompted Deutsche Bank to outline five key drivers behind the surge. The bank noted that the surge came in anticipation of the beginning of the White House’s ‘Crypto Week,’ where the House of Representatives is set to vote on several key bills, including the CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act.

Deutsche Bank highlighted that the rise in Bitcoin's price is due to a convergence of macro and micro factors. These factors include supportive regulation, increased institutional adoption, longer-term holding behavior, persistent geopolitical and tariff uncertainty, ongoing de-dollarization, and technological developments. The firm noted that volatility is historically low, suggesting a gradual decoupling between Bitcoin’s spot prices and volatility.

One of the central drivers of Bitcoin's surge is regulation. Since the U.S. administration's pro-crypto stance, there has been a fostering of regulatory clarity. Efforts such as the creation of a Bitcoin Strategic Reserve and the GENIUS Act have contributed to this clarity. Globally, regulatory momentum is also building in the EU, U.K., and China.

Institutional inflows have surged since spot Bitcoin ETFs were approved in January 2024. U.S. Bitcoin ETFs attracted over $35 billion in cumulative inflows in 2024, exceeding $50 billion by mid-2025. BlackRock’s iShares Bitcoin Trust alone holds about $80 billion. This institutional interest is a departure from the past, where Bitcoin was often seen as a volatile and speculative investment. The evolution of Bitcoin into a more stable asset is attracting investors who are seeking reliable stores of value.

Another factor contributing to the rally is the increasing corporate adoption of Bitcoin. Companies are increasingly incorporating Bitcoin into their investment portfolios, further legitimizing the cryptocurrency. This trend is expected to continue as more institutions recognize the benefits of holding Bitcoin as part of their asset allocation strategies.

The rally has also been fueled by a shift away from the U.S. dollar. Deutsche Bank noted a de-dollarization trend, citing falling dollar reserves and rising interest in Bitcoin as an alternative asset. This trend is expected to continue as more investors seek alternatives to traditional fiat currencies.

Finally, advances in technology, such as the Lightning Network and stronger custody solutions, are making Bitcoin more scalable and secure. These technological advancements are attracting a broader range of investors, including those who may have been hesitant to enter the market in the past. Deutsche Bank expects declining volatility and broader adoption to continue lifting Bitcoin’s legitimacy and performance.