Bitcoin trades above $120,000, hitting record highs ahead of U.S. lawmakers’ ‘Crypto Week’

Market Trends - Bitcoin surpassed $123,000 for the first time, entering price discovery mode [1] - The rally is driven by sustained institutional demand, not just retail investors [1] ETF Inflows - Spot Bitcoin ETFs experienced massive inflows, totaling $27 billion last week [1] - Nearly half of the weekly inflow occurred in a single day, marking the second-largest session on record [1] - BlackRock's IBIT fund now holds over $83 billion in assets, becoming one of the fastest-growing ETFs in US history [2] Market Dynamics - A short squeeze is occurring, forcing traders who bet against Bitcoin to buy back in [2] - Options expiration cleared selling pressure, potentially leading to increased volatility [3] Regulatory Landscape - The House is considering bills on stablecoin oversight and a Fed-issued digital dollar [3] - Republicans are promoting "crypto week" to make the US more favorable to digital assets [4] Overall Outlook - Near-record ETF inflows, a short squeeze, and potential regulatory tailwinds create a powerful setup for continued momentum [4]