Bitcoin surge signals cryptocurrencies going mainstream

15/07/2025 03:52 AST

The new all-time high that Bitcoin, the world's largest cryptocurrency, hit on Monday signals a long-term structural shift in how digital assets are integrated into the global financial system, analysts say.

According to Reuters data, Bitcoin scaled a record high of $123,153.22 before pulling back slightly to trade 2.4 per cent higher around $122,000.

Starting on Monday, the US House of Representatives have started to debate a series of bills to provide the digital asset industry with the nation's regulatory framework it has long demanded.

"The surge in bitcoin, which is up 29 per cent for the year thus far, has sparked a broader rally across other cryptocurrencies over the past few weeks even in the face of Trump's chaotic tariffs," said Vijay Valecha, Chief Investment Officer, Century Financial.

Ether, the second-largest token, scaled an over five-month top of $3,048.23 on Monday and last stood at $3,036.24. The sector's total market value has swelled to about $3.78 trillion.

"As adoption deepens and infrastructure improves, we expect continued momentum and stronger collaboration between crypto-native platforms and traditional financial institutions," Lennix Lai, Chief Commercial Officer, OKX, told Khaleej Times.

Bitcoin's breakout above $120,000 marks a pivotal shift, fuelled by pro-crypto sentiment from the Trump campaign, strong ETF inflows, and increasing corporate treasury allocations. These drivers signal a sustained bullish trend heading into Q3 2025, with BTC projected to average around $125,000. Analysts expect a trading range of $105,000 to $150,000, with key levels at $108,500 support and $130,000 resistance serving as critical markers for momentum confirmation, analysts say.

Ethereum is also gaining strength, currently trading between $2,800 and $3,000, supported by continued ETF demand, the upcoming Pectra upgrade, and expanding DeFi activity. ETH is forecasted to average $3,800 in Q3, with upside potential toward $5,000 if it can clear the $3,700 resistance. However, downside risks remain: a Bitcoin correction or shifting regulatory landscape could push ETH back to $2,700. "Long-term fundamentals remain solid, bolstered by 34.6 million ETH staked and rising institutional interest, though volatility and competitive pressure from chains like Solana warrant a cautious approach. Traders should prepare for 10-30 per cent swings and monitor macroeconomic developments closely," Ryan Lee, Chief Analyst at Bitget Research, told Khaleej Times.

While investor interest continues to grow, the most significant catalysts for this milestone have been the record inflows into regulated Bitcoin ETFs, the passing of favorable legislation in key markets, and the rising adoption of stablecoins as a foundational layer for capital mobility across the digital asset ecosystem. "As traditional asset classes experience shifts in performance, more investors are turning to Bitcoin, stablecoins, and gold as long-term value stores and diversification tools, with Bitcoin now perceived as a long-term strategic reserve within both the retail and institutional sectors, as well as to central banks," Lai said.

The introduction of regulated ETFs has opened the door to new capital from institutional investors, while progressive legislation has enhanced trust and reduced barriers to entry. "At the same time, stablecoins are playing a critical role in facilitating real-time access to markets, enabling frictionless transitions between fiat and crypto, and amplifying liquidity across exchanges. These forces combined are not only fueling price appreciation but are accelerating the broader institutionalization of crypto," Lai added.

Devika Mittal, Regional Head at Ava Labs, stressed that the bouquet of legislation being debated at the US Congress is expected to bring some much-needed structure to the Wild West of digital assets. "It's a bold move that demonstrates how far we've come from the days when cryptocurrency was viewed as a fringe investment. The timing couldn't be better, as countries like Vietnam are starting to embrace crypto themselves, following America's lead in the global digital economy. Wall Street's big players have been waiting on the sidelines for clearer rules, and these bills could finally give them the confidence to dive in," she said.

But it's not just about attracting big money - there's real attention being paid to protecting everyday investors from scams and sketchy practices. "What's really striking is how the conversation in the US has evolved. Instead of treating crypto with suspicion, lawmakers are now actively working to help the industry thrive while keeping it transparent. It's a remarkable turnaround that could reshape our understanding of digital assets and blockchain," Mittal said.

Some analysts sound a note of cautioned over the current market euphoria. Shivam Thakral, CEO of BuyUcoin, India's second-longest running digital asset exchange, noted that the crypto fear and greed index currently stands at 70, indicating that the market is overheated and due for a correction. "However, single day inflow into crypto funds on July 11 (latest recorded data) stood at a staggering $1.23 billion, out of which, Bitcoin ETFs contributed nearly $1.03 billion. This massive inflow of institutional money coupled with euphoria around the US 'Crypto Week', which kicks off today, is driving the current crypto rally," he added.

Khaleej Times