Bitcoin has strongly broken through the $122,000 mark! Trump's new policies and the influx of institutional funds have triggered a surge in the crypto market.

Bitcoin strongly broke through the $122,000 mark on Monday morning, successfully holding the key support at $120,080 after the Sunday evening close, and began to rebound. The technical indicators show strong bullish momentum, with both RSI and MACD issuing positive signals. The market's upward momentum is mainly driven by Trump's new policy allowing pension funds to allocate crypto assets, as well as significant capital inflows into Bitcoin spot ETFs. The global market is focused on this week's key inflation data and progress in China-US tariff negotiations.

(Bitcoin price breaks through key technical indicators) Bitcoin surged strongly above $122,000 in Monday's morning session. Previously, Bitcoin successfully held the key technical support level of $120,080 on Sunday night, achieving a rise of about 3% on Sunday. It is now just one step away from the historical peak of $123,218 set on July 14.

The technical indicators continue to release bullish signals. The Relative Strength Index (RSI) on the daily chart is currently at 65, well above the neutral 50 line; at the same time, the Moving Average Convergence Divergence (MACD) formed a bullish crossover pattern on Monday. These indicators all suggest that there is further upward momentum for Bitcoin's digital asset price.

However, analysts have also issued a warning: if the momentum of this round of crypto assets rise weakens, Bitcoin may fall back to the key daily support level of $116,000.

( Trump's new policies and ETF inflows ignite demand ) Last Thursday, U.S. President Trump signed an executive order directing the Department of Labor to advance a reform plan allowing 401(k) retirement plans to allocate Crypto Assets, private equity, and other alternative assets.

This policy change may open up Bitcoin investment channels for millions of retirement accounts, potentially stimulating massive buying pressure. Analyst Fan pointed out that allowing retirement accounts to invest in high-risk digital assets could bring "significant" incremental demand for crypto investment.

Institutional capital inflow remains another strong driving force. In the past week, Bitcoin Spot ETF recorded a net inflow of $253 million. Despite the price consolidating after peaking last month, the demand for institutional allocation remains strong. Ethereum also performed remarkably, with its price reaching the highest level since December 2021. It is worth noting that last week, the Spot Ethereum ETF attracted $461 million, surpassing the inflow scale of the Bitcoin ETF, highlighting institutional investors' strong willingness to allocate to the two major Crypto Assets.

(Global Market Focus: Inflation Data, Tariff Negotiations, and Exchange Rate Fluctuations) In the US stock market, stock index futures rose slightly on Sunday evening. Dow Jones Industrial Average futures increased by 56 points (+0.1%), while S&P 500 futures and Nasdaq 100 futures both rose by 0.1%. This slight increase was due to last week's strong closing performance – the Nasdaq Composite Index reached a historic high, the S&P 500 approached record highs, and Apple's stock price surged, boosting the Dow.

Despite the positive market performance, some investors remain cautious. Jay Woods, Chief Global Strategist at Freedom Capital Markets, stated that the market may be "in a phase of volatile digestion" and could present a sideways consolidation trend. This week's inflation data will be the focus, with the Consumer Price Index (CPI) set to be released on Tuesday and the Producer Price Index (PPI) scheduled for Thursday.

Woods emphasized that "CPI data is the most critical," which will directly impact market expectations ahead of the Federal Reserve's interest rate meeting in September. The release of these key economic data coincides with the Federal Reserve's Jackson Hole annual meeting on August 21-23, which typically sets the tone for subsequent interest rate policies.

In the European market, IG futures indicate a positive opening: the London FTSE 100 index is slightly up, the French CAC 40 index has risen by 0.2%, the German DAX index has climbed by 0.3%, and the Italian FTSE MIB index has increased by 0.5%. Asian markets performed relatively calmly overnight, with traders closely watching whether the U.S.-China tariff truce can be extended beyond the August 12 deadline. The current 90-day trade truce has effectively eased tensions that could disrupt global trade flows.

Emerging market assets are also strengthening. The softening of the US dollar boosts emerging market currencies, with the Indonesian rupiah leading Asian currencies. Ahead of the planned talks between the US and Russia, the Romanian leu and Czech koruna perform well in the broader emerging market. The MSCI Emerging Markets Currency Index rises slightly, while the MSCI Emerging Markets Stock Index increases by 0.2%.

Traders are closely monitoring three key catalysts: the Federal Reserve's potential shift to a more dovish monetary policy stance, the potential extension of the China-U.S. tariff truce, and the progress of U.S.-Russia talks later this week. The market generally expects these factors to collectively drive emerging market assets into a new round of rise.

( Conclusion ) Bitcoin has strongly broken through $122,000 under multiple favorable catalysts. Trump's new policy opens up a trillion-dollar retirement fund channel for the crypto market, combined with the continuous capital inflow from spot ETFs, collectively building strong upward momentum. The technical indicators show a bullish pattern, but caution is needed for high-level pullback risks. This week, the global financial market faces a critical test with inflation data, while the progress of China-U.S. tariff negotiations and U.S.-Russia talks will also affect emerging market nerves, potentially amplifying the volatility of crypto asset prices. Institutional funds continue to flow into Bitcoin and Ethereum spot ETFs, indicating that the allocation position of digital assets in mainstream investment portfolios is accelerating.