Why trust Greenbot
Bitcoin shattered its previous record Monday, reaching $123,000 before pulling back to $117,209 as institutional investors poured billions into cryptocurrency funds and corporate buyers accelerated their purchasing pace.
The rally was fueled by $3.7 billion flowing into crypto exchange-traded funds last week, marking the second-largest weekly inflow on record. BlackRock’s Bitcoin ETF alone captured $2.4 billion of that total, according to CoinShares data.
Strategy, formerly known as MicroStrategy, added fuel to the surge by announcing a $472.5 million Bitcoin purchase. The corporate treasury company now holds 601,550 bitcoins worth approximately $70 billion at current prices.
“Political developments and signals from the Federal Reserve” drove the massive institutional demand, said James Butterfill, head of research at CoinShares.
The Federal Reserve’s June meeting minutes, released Wednesday, showed officials expect interest rate cuts this year. Lower rates typically push investors toward riskier assets like Bitcoin as they search for better returns.
Meanwhile, Congress is debating three cryptocurrency bills this week during what lawmakers dubbed “Crypto Week.” The House plans to vote on the CLARITY Act and GENIUS Act, which would provide clearer regulatory guidelines for digital assets and stablecoins.
“The big impact of ‘Crypto Week’ legislation will be reduced risk and downside volatility,” said Matt Hougan, chief investment officer at Bitwise. “70%+ drawdowns are a thing of the past.”
Bitcoin’s rapid climb destroyed $1.3 billion in short positions within one minute as the price jumped from $120,000 to $121,000. The cryptocurrency now ranks as the world’s fifth-largest asset by total value, with a $2.39 trillion market worth that tops Amazon’s.
Spot trading volume increased by 50% from July 9 to 15, indicating genuine buying interest rather than speculative trading. This organic demand suggests institutional adoption is accelerating beyond just ETF investments.
Former Binance CEO Changpeng Zhao called today’s prices “just a fraction” of Bitcoin’s potential. He reminded his followers that past excitement over price milestones now seems small in comparison to current levels.
Technical analysts project Bitcoin could reach $200,000 by December 2025 based on current growth patterns. The cryptocurrency has broken above a seven-year resistance trendline that contained every previous bull market peak since 2018.
However, the pullback to $117,209 on Tuesday reflects caution ahead of Wednesday’s inflation data release. Economists expect the Consumer Price Index to rise 2.7% year-over-year in June, up from 2.4% in May.
A strong inflation reading could delay Federal Reserve rate cuts and pressure risk assets like Bitcoin. The $22 billion demand zone between $114,000 and $117,500 now serves as crucial support for the cryptocurrency’s next move.
Ethereum, the second-largest cryptocurrency, rose 20% for the week to $3,000. The total crypto market value reached $3.87 trillion despite some recent selling pressure.
