Crypto market update: Bitcoin breaks $122,000, reaching a historic high, sparking altcoin season!

According to CoinDesk, on Monday, Bitcoin ( BTC ) continued its strong breakthrough trend, surging to a historical high of $122,000 ( ATH ), completely igniting the FOMO sentiment across the entire crypto market. With sustained strong inflows into Bitcoin Spot ETF, massive short positions liquidation (short squeeze), and optimistic signals released from Washington's policy, the bullish atmosphere in the crypto market is strong.

Ethereum ( ETH ) why did it strongly break through 3000 dollars? ETF fund inflow is the key!

The second largest crypto asset Ethereum ( ETH ) has successfully broken through the $3000 key psychological level. The momentum for this round of rise mainly comes from last Friday's $383 million net inflow recorded by the Ethereum Spot ETF. Driven by the strong performance of Bitcoin, major mainstream coins/blue chip crypto assets ( Majors ) have generally recorded significant rises over the past week.

Altcoins/Competing Coins ( Altcoins ) Broad Rise Carnival: XRP, SOL, DOGE Show Impressive Weekly Gains!

• Ripple (XRP) trading price is close to 2.95 USD, with a weekly rise of up to 30%.
• Solana(SOL) successfully recovers the important price level of 167 USD.
• Dogecoin(DOGE) is driven by the rotation of retail funds( and the popularity of Meme coins), soaring over 20% in a single day.

This market rotation pattern is consistent with phenomena observed in previous cycles: Bitcoin's strong rise is like unlocking the liquidity floodgates for the broader crypto market. Traders generally believe that if macroeconomic conditions remain stable and Bitcoin can hold above the $120,000 support level, large-cap altcoins are likely to see further upside potential in the coming weeks.

Positive policy expectations: The United States launches "Crypto Week" aiming for the status of "Global Crypto Capital"

This week, the U.S. Congress officially kicked off the "Crypto Week" ( Crypto Week ) series of hearings, aiming to make the U.S. the "global Crypto Assets capital center/crypto hub". Traders are actively positioning themselves, betting on the potential policy tailwinds that could come from the upcoming clarity in crypto regulation ( Legislative Tailwinds ).

Analyst Interpretation: Short Squeeze Boosts the Rise, Summer Market May Continue, Tariffs Become Major Risk

SignalPlus Insight Director Augustine Fan analyzed in Telegram: "Crypto Assets prices benefited from this 'melt-up fervor' (Melt-up fervor), Bitcoin once surged to above the $118,000 range, with short positions liquidated worth over $1 billion." Fan added: "Market sentiment is likely to remain frothy throughout the summer (Frothy), the only substantial risk catalyst at the moment is the complete breakdown of tariff negotiations. But the ball is now in the president's court; let's see how aggressively he wants to play the current hand."

On-chain data is strong & capital flows across assets, boosting bullish confidence

Bitcoin has strong on-chain support at $109,000(On-chain Support), coupled with funds continuously flowing from the traditional stock market into the digital asset space(Cross-asset Flows), injecting stronger confidence into bulls(Bulls). As OSL's Chief Commercial Officer(CCO) Eugene Cheung stated, “The overall trend remains bullish(Bullish). If the macro winds cooperate(Macro Winds Cooperate), we can expect Bitcoin to test the target range of $130,000 to $150,000 before the end of the year.

Macroeconomic correlation: Trump's tariff policy escalates, European and American stock index futures respond with a decline

At the same time, the Equity-Index Futures ( in the US and Europe fell during the early trading session in Asia on Monday. This was after Trump announced a 30% tariff on goods from the EU ) and Mexico, a move that escalated global trade tensions. This tension had already affected Brazil, Algeria, and Canada last week.

• As of the Asian morning session, S&P 500 futures (S&P 500 Contracts) fell 0.4%.
• Europe's Stoxx 600 Futures ( fell 0.6%.
• It is worth noting that the price of silver )Silver( has risen close to the highs since 2011, reflecting a growing interest in physical hard assets )Hard Assets( in the broader market.