This morning, Bitcoin (BTC) once again set a historic high, with the price breaking through the $120,000 mark, reaching $121,367, and a daily rise of up to 3.8%. This breakthrough not only marks the most impressive single day Closing Price of the year but also greatly boosts the confidence of long positions investors.

As market sentiment rises, Wall Street giants have also expressed optimistic views on the future trend of Bitcoin. Tom Lee, co-founder of Fundstrat and chairman of BitMine, stated that Bitcoin is expected to climb to $250,000 by 2025. This prediction further fueled market enthusiasm, igniting a positive outlook among investors regarding the long-term prospects of cryptocurrencies.

Behind Bitcoin's breakthrough of the $120,000 mark, there are mainly three driving forces:

1. The regulatory environment is becoming clearer: The recent friendly attitude of the U.S. Congress towards crypto assets has paved the way for multiple Bitcoin ETF applications, lowering the threshold for large institutions to enter.

2. Institutional funds continue to flow in: Since the Bitcoin halving event in April this year, the selling pressure from miners has decreased, while institutional investors such as pension funds and family offices continue to dollar-cost average, strengthening the market's long positions.

3. The global macro environment is relatively loose: Inflationary pressures and geopolitical risks have heightened demand for safe-haven assets, benefiting Bitcoin alongside traditional safe-haven assets like gold.

From a technical analysis perspective, the monthly high of $115,800 set in July has now turned into a support level, and the market generally believes that $133,000 will be the next key resistance level.

It is worth noting that the rapid rise in Bitcoin prices has also brought market volatility. According to Coinglass data, a total of $370 million in the cryptocurrency market was liquidated in the past 24 hours, with $60 million in Bitcoin liquidations occurring within just one hour.

Overall, Bitcoin's breakthrough of the $120,000 barrier is the result of multiple factors including improved regulatory environment, institutional fund inflows, and changes in supply. However, investors should remain vigilant about the potential for drastic fluctuations in the market and rationally view the development prospects of the cryptocurrency market.