Bitcoin Surges to Record High Above $118,000. Where the Crypto Goes Next.

Bitcoin surged to a record high on Friday. (Michael M. Santiago/Getty Images)

Bitcoin surged to a fresh record above $118,000 overnight, the latest new high in a stellar week for the cryptocurrency.

The world’s largest token by total market capitalization rose as high as $118,295, according to data from CoinDesk, before giving up some of its gains. Early Friday, it was up 5.8% over the past 24 hours to $117,723.

Bets on a September Federal Reserve interest-rate cut, inflows into spot crypto exchange-traded funds, and regulatory tailwinds have all helped to spur this week’s rally, powering Bitcoin to its first all-time highs since May.

It’s only a matter of time before the token tops $120,000, particularly given that U.S. lawmakers are set to review several key digital-asset proposals next week, Pepperstone strategist Dilin Wu said Friday in a research note.

“If legislative momentum remains strong, ETF inflows persist, and the Fed signals dovish intent, Bitcoin retesting the $120,000 mark before August would not be far-fetched,” Wu wrote.

Bitget Research analyst Ryan Lee said in a research note that he believes the crypto can hit $120,000 by the end of July.

Other tokens were also racking up gains early Friday. Ethereum jumped 6.6%, Solana rose 3.6%, and XRP gained 5.9% over the past 24 hours, according to data from the crypto exchange Kraken.

Write to George Glover at george.glover@dowjones.com