Bitcoin surges past $123,000 level on Monday

Bitcoin broke through the $123,000 level on Monday for the first time, Bloomberg reports. The world's largest cryptocurrency had remained stuck in a tight trading range for several months prior to this move. The breakout came amid favorable developments from Washington and significant capital inflows.

According to the report, US regulators have issued new guidance on banking services for digital assets. This marks the latest step in the gradual easing of cryptocurrency regulations by federal authorities.

Adam Guren, founder of Hunting Hill Global Capital, described bitcoin's move above $120,000 not as a "sprint" but rather as "squeeze." He pointed to record-low bitcoin outflows from exchanges and thin order books, noting there simply aren't enough sellers to meet current demand.

Bloomberg notes bitcoin's bullish momentum shows no signs of slowing. Bearish bets on the cryptocurrency are being outweighed by demand for long positions. As Delta Exchange's Pankaj Balani observed, if bitcoin can hold above $122,000, it could soon test the $124,000–$125,000 range.