Bitcoin extended its bullish run on Monday, breaching the $120,000 threshold for the first time, driven by renewed investor interest in cryptocurrency-linked exchange-traded funds.

According to Coin Metrics, the price of the world’s largest cryptocurrency by market capitalization climbed to $122,600 at 1:27 p.m. Singapore time.

The surge follows a wave of capital inflows into spot bitcoin ETFs, which recorded their strongest single-day performance of the year last Thursday, attracting $1.18 billion in new investments.

“We believe that Bitcoin’s surge is driven by longer-term institutional buyers and this will propel it to $125k in the next month or two,” Jeff Mei, chief operating officer at cryptocurrency exchange BTSE, told CNBC.

“Trump’s trade disputes with the likes of the EU, Mexico, and other trading partners could cause dips in the week ahead, but it’s likely that Bitcoin’s institutional buyers are discounting this risk and maintaining their positions that Bitcoin will still appreciate in the long run,” he added.

Bitcoin’s upward momentum is being fueled by rising institutional interest and growing regulatory optimism, with investors eyeing new record highs this year.

Corporate treasuries are accelerating their bitcoin purchases, adding to the bullish sentiment.

At the same time, progress in the U.S. Congress toward passing new cryptocurrency legislation is boosting confidence across the market.

These factors, combined with strong inflows into bitcoin ETFs, are reinforcing expectations of a continued surge in the cryptocurrency’s value.