The first cryptocurrency is back in favor. For the first time in a long while, Bitcoin has broken through the $122,000 mark. No wonder, investor optimism is steadily growing.

After breaking out of a narrow trading range, the leading cryptocurrency has spread its wings. Interestingly, it had been stuck in that range for the past several months. Earlier, skeptics doubted whether the flagship cryptocurrency could regain the record-breaking momentum it had at the beginning of 2025. And here is the result: Bitcoin has indeed managed to break through a critical threshold.

Following a sharp rally driven by news of US President Donald Trump’s re-election for a second term, BTC stalled in a range around $100,000. That pause lasted several months. Concerns about Trump’s political and economic agenda dampened crypto investor enthusiasm. However, risk assets like stocks are once again approaching their historical highs. Bitcoin has resumed its uptrend and reached its all-time high. “This situation reflects a more mature perception of Bitcoin. It’s seen not just as a speculative asset, but rather as a macro-hedge and a scarce store of value,” George Mandres, leading trader at XBTO Trading LLC, said.

On July 14, the flagship asset was trading at $122,200, and just a few hours earlier had reached $122,600. Since December 2024, Bitcoin has gained over 30%. “Bitcoin has crossed the $120,000 mark, but the real test lies at $125,000. Support is seen around $112,000, and any pullback looks more like a buying opportunity than a trend reversal,” Rachel Lucas, analyst at BTC Markets, noted.

One of the drivers of Bitcoin’s recent rally was the mass liquidation of bearish positions — those betting on a decline lost over $1 billion. Another key support for the flagship asset came from expectations surrounding Crypto Week in the US Congress, where lawmakers are going to discuss crucial digital asset legislation.

However, some analysts remain skeptical about the duration of Bitcoin’s rise. They believe this surge may be short-lived, with Bitcoin facing either a decline or consolidation in its current range. Time will tell who is right.