Key Insights
- Bitcoin price has just set a new all-time high above $124,000, briefly overtaking Google’s market cap.
- Liquidation data shows that nearly $2 billion in short positions are at risk above $122,800.
- Institutional inflows and macro tailwinds could be major promoters of Bitcoin’s push toward $175,000.
Bitcoin price jumped to fresh all-time highs this week. This happened after the asset broke past $123,000 and briefly touched $124,457.
The spike came after US inflation statistics for July showed no change from June, at 2.7% year on year. This was slightly below the 2.8% predictions. Also, this was a significant fuel source for rate cut speculation.
ETFs and Institutional Flows Drive Bitcoin Price Higher
According to the CME FedWatch tool, markets expect a 93.9% chance the Federal Reserve will lower rates in September.
Historically, looser monetary policy tends to support BTC by increasing liquidity and investor appetite for risk assets. The news also boosted U.S. stocks, with the S&P 500 hitting a new high of 6,457.
The Bitcoin spot ETFs have also continued to see strong inflows. Data from Farside Investors, for example, shows BTC ETF netflows of $65.9 million on Tuesday alone.
Since Friday, these ETFs have attracted more than $1 billion in new investments. Ethereum’s spot ETF has also been a strong performer with $1 billion in daily inflows for the first time.
ETH’s strong performance has lifted overall market sentiment. Bitcoin appears to be benefiting the most from this positive shift. As a result, the Bitcoin price is showing notable strength.
Liquidation Clusters Could Push Bitcoin Price Above $125K
Short sellers feel pressure as BTC continues to hover near major resistances. For example, data from Coinglass shows that there is currently a cluster of liquidation levels starting at $122,500. In addition, there are even more chances of forced trade closures if the price of Bitcoin moves above.
Coinglass data shows that nearly $2 billion in short positions could be liquidated. This could occur if the Bitcoin price breaks through the $122,800 to $125,500 range. These massive liquidations can speed up price gains as traders are forced to buy back their positions.
To put things into perspective, the $126,000 level is now significant for confirming the next breakout. In addition, $120,000 has flipped into a strong support zone, and Bitcoin’s market cap/dominance continues to grow.
Bitcoin Price Briefly Flips Google’s Market Cap
The recent rally to the $124,000 price level pushed Bitcoin’s market cap above $2.45 trillion. This helped the asset to overtake Google’s parent company, Alphabet, to become the world’s fifth-largest asset by market value.
The next stop for BTC is Apple’s market cap of $3.4 trillion. For context, for Bitcoin to overtake Apple, its price would need to rise above $175,000. Taproot developer Udi Wertheimer believes that could happen by the end of August if the current pace continues.
Arthur Hayes, the co-founder of BitMEX, is even more optimistic. He predicts that the Bitcoin price could reach $250,000 in 2025. This may happen if the Federal Reserve returns to quantitative easing and injects more liquidity into the economy.
What Do Traders Expect Next?
Analysts are monitoring whether BTC can push above $126,000. This is a level described by Rekt Capital as important for confirming the next leg of the bull run.
Rekt Capital says that $120,000 is now acting as solid support. Many traders believe the path to $130,000 is becoming clearer.
It’s unclear if the current accumulation and price rise will spark a long-term rally. The outcome may take several quarters to unfold. For now, institutional flows and ETF demand are strong. Favorable macro conditions also support positive sentiment.
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