Bitcoin Surpasses $123,000 Ahead of Decisive Week for Crypto Markets
Bitcoin (BTC) continued its impressive July rally as it surpassed $123,000 for the first time, setting a new all-time high (ATH) on Monday morning European time.
Up more than 16.9% since the start of the month, the leading cryptocurrency has broken through a key resistance level around $110,000 and is on track to complete its fourth consecutive month of growth.
Bitcoin Enters Top 5 Largest Global Assets
With a current market capitalization of $2.44 trillion, Bitcoin has surpassed Amazon to become the world's fifth most valuable asset, behind only gold, NVIDIA, Microsoft and Apple.
This breakout price increase is driven by a confluence of factors including massive ETF inflows, surging institutional demand, and a tight supply, all of which are combining to create a wave of bullish sentiment in the investment community.
Record ETF Inflows IBIT Leads
BlackRock's IBIT Bitcoin Spot ETF has now reached $83 billion in assets under management (AUM), tripling in just 200 trading days, a historic milestone for the crypto ETF industry.
Not only BlackRock, other US-based Bitcoin ETFs have also recorded billions of dollars in net inflows, while companies like MicroStrategy and Metaplanet continue to increase BTC reserves in their treasury strategies.
BTC Exchange Supply Hits Multi-Year Low
According to data from Glassnode, Bitcoin is being accumulated by both retail and institutional investors at a rate of 19,300 BTC/month, much higher than the amount of BTC being mined (~13,400 BTC/month).
This explains the record-breaking BTC withdrawal trend from exchanges, similar to the pattern in 2020 before BTC exploded by 200%. Investors clearly want to hold for the long term, rather than sell in the short term.
The Decisive Week: Inflation, Crypto Laws, and Fed Policy
This week marks a turning point for the crypto market, with three major events that could shape price trends in the coming months:
US July CPI (July 15): If inflation is lower than expected, expectations of a September rate cut will increase, giving an advantage to risky assets like Bitcoin.
Legislative votes on stablecoins and CBDCs: New bills could reshape the US crypto regulatory landscape, promote transparency, and open the door to institutional access.
ETF momentum and institutional flows: With positive sentiment prevailing, institutional investors continue to accelerate their allocations to digital assets.
Bitcoin enters “price discovery” phase
The Crypto Fear & Greed Index is now at 74, confirming the prevailing “greed” sentiment.
Many analysts believe that Bitcoin is consolidating in the $120,000-$130,000 range, and any short-term correction to $110,000 would be viewed as positive, not a reversal signal.
Why this phase is especially important
BTC’s strong breakout not only reflects the price trend, but also shows the maturity and increasing scarcity of this digital asset. With increasing institutional participation and steps towards transparent regulation, Bitcoin is being seen as a strategic choice in the global asset class.
If the current trend continues, Bitcoin could enter the next phase of long-term growth, laying the foundation for the largest wave of institutional adoption ever.