BTC Hits $123K as Crypto Bills Advance

Bitcoin (BTCUSD) hit a new record high of $123,153 on Monday, 14 July, as institutional demand increased due to possible crypto regulation news in the US. Dubbed “crypto week,” Congress members will vote on the CLARITY and GENIUS Acts, two crypto–friendly bills likely to change the landscape for various cryptocurrencies and stablecoins.

The second- and third-largest cryptocurrencies, Ethereum (ETHUSD) and Solana (SOLUSD), also rose on Monday. Combined with a declining dollar (DX), the passage of President Donald Trump’s tax and spending bill, and high-beta tech stocks' outperformance, Ethereum’s breakout above the $3,000 mark has revived hopes of a long-awaited alt season. However, the Altseason index still hovers in ‘Bitcoin Season’ but is shifting fast. (Source: Reuters)

Can the passage of the Congressional crypto bills become the signal everyone’s been waiting for? Let’s explore all drivers.

TL;DR

• Bitcoin hits historic $123K as Congress prepares to vote on crypto-friendly CLARITY and GENIUS Acts this week.

• Massive supply crunch developing with Bitcoin ETF inflows reaching 23,831 BTC—nearly 10x the rate of newly mined coins

• Altseason signals are emerging as the Altcoin Season Index slowly exits Bitcoin Season, Ethereum breaks above $3,000, and early altcoin outperformance begins

• Institutional accumulation is accelerating with MicroStrategy adding 4,255 more Bitcoin to reach 601,550 BTC total.

• Fed pivot potential from Trump pressure on Powell could provide the final catalyst for a potential altcoin rally.

What Is the Genius Act?

US Congress members are expected to vote this week on the GENIUS Act, the Guiding and Establishing National Innovation bill for US stablecoins. The bill is designed to be pegged to the dollar on a 1:1 ratio and be backed by liquid assets such as the US dollar and short-term Treasuries. In a blow to cryptocurrency critics, the new federal rules would enable banks and consumers to embrace legitimate stablecoins, supporting the mainstream adoption of digital assets. 

Besides GENIUS, the House will also vote on the CLARITY Act this week. CLARITY will expand the regulatory oversight of cryptocurrencies that are defined as securities or commodities, either to the SEC (Securities and Exchange Commission) or to the CFTC (Commodity Futures Trading Commission). Although GENIUS has received bipartisan support from both Republican and Democratic parties in the Senate, CLARITY still needs to pass in the Senate. 

Finally, the House is poised to also vote on the Anti-CBDC (Central Bank Digital Currencies) Surveillance State Act. This Act will prevent the Federal Reserve and all its branches from issuing CBDCs to persons.

How Did Crypto-Stocks Perform?

As we near the passing of long-sought crypto–friendly legislation, long-term holders and institutions grab corporate treasuries due to policy clarity. Strategy (MSTR), whose CEO, Michael Saylor, a bitcoin advocate, said on Monday that it purchased another 4,255 Bitcoins to bring its total holdings to 601,550 BTC. The stock traded 2.7% higher, alongside Robinhood (HOOD), which rose 1.6%, and MARA Holdings (MARA) and Riot Platforms (RIOT), which saw gains of 4.5% and 4%, respectively. 

Coinbase (COIN) also rose 1.7% as institutional sentiment improved. The stock reached a record high on Monday and is up 60% in the last month alone on the back of a favourable environment and a number of acquisitions to enable the expansion of its own services. Some analysts believe the fundamentals are only going to improve, raising the target price to $510. The company is expected to benefit from CLARITY and from offering tokenised equities, as well as from GENIUS, as its platform takes in around 50% of stable issuer Circle’s revenue. However, some analysts remain sceptical about Coinbase’s short-term price action ahead of its earnings report on 31 July, expecting a better entry price following the release.  

Also of note is the potential impact of GENIUS on payment network companies such as Visa (V) and Mastercard (MA). Regulated and Treasury or dollar-backed stables could force traditional giants to offer payment options. Some voters of the Act already associate the stablecoins marketplaces with credit cards, while other proposed amendments include the Credit Card Completion Act. 

While crypto legislation is the hot topic of the week in Washington, some analysts focus on BTC dominance and whether this marks the start of the alt season. For context, back in 2021, the last alt season began around 180 days after the Bitcoin Halving, and price action revealed a golden cross pattern. May 2025 marked the 180-day cycle, while earlier in April, the BTC chart also saw its 50-day moving average cross above the 200-day moving average (the golden cross). Looking further back into 2018, 2021, and 2023, when Bitcoin dominance reversed, it triggered the beginning of the last season. But the answer to a potential Altseason in 2025 is not black or white. (Source: Barrons)

Are We in Alt Season?

Some altcoins in the top 50 have performed better than Bitcoin over the past 90 days. Although this can be considered an early signal for an altseason, the Altcoin Season Index is at 22. This is still far from the 75 level, which signals the official altseason, but the index keeps moving further up from the low reached on 5 June at 13. BTC dominance also remains far from the 70%, which has historically kicked off altseasons. It reached a high of 66% in June but has since trailed back some of the increases. Unlike the previous bull market in 2021, retail flows remain low, and pumps in coins switched hands very quickly, ending up losing steam for continued growth. However, the norms in Bitcoin cycles have changed.

Over the past few days, Bitcoin ETF inflows have increased to 23,831 BTC. This is equivalent to nearly a tenfold increase compared to the number of mined coins, which creates an enormous imbalance between supply and demand. Although retail demand remains low, a trend that has been ongoing for some time, Bitcoin continues to set new records. Notably, ETH ETF inflows also reached a high in 2025, which is fuelling renewed optimism that the altseason is here, if not near. 

One of the key differentiators of 2025, particularly in the macro landscape, is the passage of Trump’s OBBB (One Big Beautiful Bill), which raised the US debt ceiling and is expected to increase long-term debt. So perhaps some market participants are also waiting to see the outcome of Trump’s assault on Fed Chair Jerome Powell, as he is planning to remove him from the Fed’s leadership for not cutting interest rates. When combined with the new spending bill of $3.3 trillion, the rising potential of a Fed pivot may be the missing catalyst to provide altcoins with major tailwinds for a parabolic rally. In fact, many analysts see the Fed’s monetary policies as the most significant risk facing the crypto space.

Conclusion

Bitcoin's march to $123K is backed by Congressional crypto bills that could reshape the entire digital asset landscape. Although the CLARITY and GENIUS Acts add clarity, while institutional players continue accumulating BTC, we are still in "Bitcoin Season" territory—far from the $75 threshold that signals crypto euphoria.

With Trump's spending bill and a potential Fed pivot, altcoins may be showing early signs of life. However, the Fed's backdrop remains a key risk to digital asset performance despite the increasingly crypto-friendly stance emerging from the US. 

*Past performance does not guarantee future returns

FAQs:

How much Bitcoin is left?

As of 8 July 2025, approximately 1.5 million bitcoins remain to be mined, with the total supply capped at 21 million coins.

What might trigger altseason?

While past performance does not reflect future results, historically speaking, Altseason is triggered when Bitcoin dominance falls, capital flows from Bitcoin to altcoins, and the Altcoin Season Index indicates 75% of top altcoins outperform Bitcoin over 90 days.

Is altcoin season around the corner?

Multiple indicators suggest that alt season may be approaching: Bitcoin dominance has broken down from recent highs, but the Altcoin Season Index is far from the 75 threshold. Still, analysts focus on the potential for a Fed pivot, so the answer to this is yet to be determined.

What is the CLARITY Act, and how does it impact crypto?

The CLARITY Act provides a regulatory framework defining which cryptocurrencies are securities (SEC oversight) vs commodities (CFTC oversight), reducing regulatory uncertainty.