Key Points:
- Bitcoin hits new all-time high, crossing $120,000 on Monday.
- Institutional adoption has been important for this rally, with strong inflows into Bitcoin ETFs and corporate buying being major drivers.
- Macroeconomic factors are providing a great tailwind as Bitcoin is increasingly seen as a hedge against global economic uncertainties.
The crypto market has been abuzz lately, as Bitcoin hits a new all-time high above the $120,000 mark.
This highly encouraging surge has now solidified Bitcoin’s position as a dominant force in the financial space.
It also shows the cryptocurrency’s impressive YTD performance, with analysts predicting more highs to come.
Bitcoin Hits New All-Time High – Historic Surge
Bitcoin’s price hit a new high of around $122,458.02 on Monday, to the delight of investors all over the world. This rally wasn’t a sudden spike though.
It happened because of a combination of several factors including macroeconomics, institutional interest and more..
According to data from CoinMarketCap, the market cap of Bitcoin now stands at around $2.55 trillion, which has further cemented its position as the flagship cryptocurrency.
So far, daily trading volumes have been exceptionally high, with over $2.2 billion USD flowing into BTC positions within the last 24 hours.
Liquidations on Coinglas | Source: Coinglass
According to Coinglass data, liquidations have also run hot lately, with Bitcoin bears losing a staggering $459 million, as opposed to the bulls’ $15 million in the last 24 hours.
Institutional Appetite Drives Demand
Another major catalyst for this massive rise in Bitcoin’s price has been institutional interest.
So far, Farside data shows that the Bitcoin ETF market has experienced 7 straight days of inflows, from 2 to 11 July.
10 and 11 July in particular, experienced inflows over the $1 billion mark with BlackRock and Fidelity emerging as the best performers by far on both scenarios.
BlackRock’s iShares Bitcoin Trust (IBIT) in particular, has been especially bullish, accumulating over 700,000 BTC since its launch.
Generally positive inflows in the ETF market | Source: X
This fund has become one of the fastest-growing ETFs in history and on the other side of the fence, corporations are also increasing their Bitcoin holdings.
Japanese firm Metaplanet for instance, recently raked in797 BTC worth $93.6 million, in a show of interest as more and more companies add Bitcoin to their balance sheets.
This influx of capital shows that the market is maturing, and lends more credibility to Bitcoin as a financial asset.
So far, analysts believe this trend will continue, offering further price stability and appreciation.
Analysts Weigh In
Analysts have so far been bullish on Bitcoin lately. According to recent insights from BitBull, “there is no reason to be bearish on Bitcoin”
BitBull pointed out several positive factors that are influencing Bitcoin in his post on X, like the incoming US “Crypto Week,” record institutional inflow and speculation that Federal Reserve Chair Jerome Powell might resign.
Analyst Rekt Capital weighed in soon after, saying that, “the first week of Bitcoin’s price discovery uptrend two is gradually coming to a close.
Possible 7-week uptrend incoming | Source: X
According to a separate take from GlassNode, despite the impressive price action on Bitcoin, the cryptocurrency hasn’t yet hit “peak euphoria” levels.
Analyst @Defi_Edward mentioned in a recent series of tweets, that there are several areas of buying and selling pressure, similar to magnets that tend to pull prices.
The analyst pointed out that an important cluster currently sits at $115,500 – $116,500. This stands as a “retest zone, which Bitcoin could come back down to retest.
However, above 120,000, things start to thin out fast and Bitcoin is likely to behave very differently from here.
The analyst mentioned that the liquidity maps show an air gap between $120,000 and $135,000 and this could be the cryptocurrency’s next stop before any major selling occurs
