Bitcoin News Today: Bitcoin Surges 20% to $120,000 as US Passes Key Crypto Bills

Bitcoin's price surged past $120,000 on Friday, marking a significant milestone in its journey towards mainstream adoption. This rally coincided with the U.S. House of Representatives' passage of several key cryptocurrency bills during what has been dubbed "Crypto Week." The legislative actions included the CLARITY Act, which codifies Bitcoin as a digital commodity under the jurisdiction of the Commodity Futures Trading Commission (CFTC). This classification is pivotal as it removes ambiguity about Bitcoin's status as a security, a question that had previously deterred institutional investors. The Act also mandates strict oversight for trading platforms, requiring them to segregate customer assets and implement anti-manipulation systems, thereby enhancing trust in the ecosystem.

Another significant bill passed was the Anti-CBDC Surveillance State Act, which permanently blocks the Federal Reserve from issuing a retail Central Bank Digital Currency (CBDC). This move safeguards Bitcoin's role as a decentralized alternative to state-controlled digital money, appealing to institutions wary of central bank overreach. Additionally, the GENIUS Act, which establishes transparent reserve requirements for stablecoins like USDC and Tether, was also passed. By anchoring stablecoins to real-world assets, this legislation indirectly bolsters Bitcoin's value proposition, as stablecoins are vital for converting fiat into crypto and their regulation reduces systemic risks, making the entire ecosystem more investable.

The legislative progress coincided with a historic surge in Bitcoin ETF inflows. Since July 9, Bitcoin ETFs have attracted significant investments, with an average daily inflow of $354 million. BlackRock's iShares Bitcoin Trust (IBIT) led the charge, adding $1.35 billion in just two days and pushing its assets under management (AUM) past $83 billion. Other funds, including VanEck's HODL and Grayscale's Mini Bitcoin Trust, also saw robust inflows. This influx of institutional dollars is a clear indication of growing confidence in Bitcoin as a strategic hedge and a legitimate macro-asset.

The technical indicators also align with the bullish narrative. Bitcoin's recent breakout above $120,000 completed an inverted head-and-shoulders pattern, a bullish formation suggesting a potential rise to $160,000 if resistance at $123,000 holds. Short-term support rests at $112,000, but the sustained inflows and legislative momentum reduce downside risks.

For investors, Bitcoin's ascent presents two opportunities. Firstly, Bitcoin ETFs offer a regulated, low-volatility entry point for portfolios. With ETF assets nearing $150 billion, these instruments are increasingly seen as alternatives to traditional macro-assets like gold. Secondly, companies holding Bitcoin as a hedge against inflation are signaling confidence in its store-of-value role. Investors might consider stocks with significant crypto allocations, leveraging dips below $115,000 for long-term appreciation.

However, there are risks and considerations to keep in mind. Regulatory uncertainty remains a factor, as the passage of the CLARITY Act is not yet guaranteed. A stalled bill could trigger volatility. Additionally, global adoption of CBDCs could dilute Bitcoin's appeal. Bitcoin's 30-day volatility index remains elevated compared to traditional assets, requiring a long-term horizon for investors.

In conclusion, Bitcoin's $120,000 milestone is a testament to institutional adoption and regulatory maturation. The interplay between the CLARITY Act's clarity and ETF inflows signals a paradigm shift: Bitcoin is no longer a speculative curiosity but a legitimate macro-asset. For investors willing to tolerate volatility, this is a rare opportunity to align with a structural trend. As one strategist noted, “Bitcoin isn't just surviving—it's becoming the gold of the digital age.”