Bitcoin Surges 10% to New All-Time High of $120,000 on Institutional Inflows

Bitcoin has surged past the $120,000 mark, reaching a new all-time high. This significant milestone is driven by substantial institutional inflows and regulatory discussions in the U.S. The market's response to these developments has been overwhelmingly positive, with Bitcoin asserting its position as a leading digital asset.

This surge highlights the maturing digital asset market, as record institutional inflows signal rising confidence among investors. Key players, including prominent financial institutions, have increased their crypto holdings, contributing to the record-breaking rally. The discussions around the Genius Act and Clarity Act in the U.S. Congress aim to establish a clearer regulatory framework, further boosting investor confidence.

The impact of this surge is felt across various sectors, with U.S. spot Bitcoin ETFs experiencing record inflows. This influx of liquidity has led to a noticeable shift back to Bitcoin dominance, echoing past Bitcoin bull markets triggered by institutional milestones. The rally reaffirms Bitcoin's status as a macro hedge, with financial implications that are both profound and far-reaching.

The regulatory landscape is evolving, with geopolitical developments influencing Bitcoin's trajectory. Historical trends show that institutional-led Bitcoin rallies result in sustained market gains. However, the rotation out of altcoins indicates selective market positioning, as investors focus on Bitcoin's supply shock potential and its influence on market dynamics.

Bitcoin's price discovery phase began on July 9, and since then, the cryptocurrency has rallied towards the $120,000 target. The next possible target for Bitcoin is at $132,372, its 127.20% Fibonacci level. The technical outlook supports further gains as momentum indicators remain robust and price action firmly in price discovery mode.

Early on Monday during the Asian trading session, Bitcoin climbed to a peak of $119,999, a new all-time high and the closest that the asset has rallied to the milestone. The two key momentum indicators on the daily timeframe show an underlying bullish momentum in Bitcoin, further gains in BTC are likely. The Relative Strength Index (RSI) reads 76, and Moving Average Convergence Divergence (MACD) flashes green histogram bars above the neutral line.

The BTC/USDT daily price chart shows that the next price target is $132,372, the 127.20% Fibonacci retracement level of Bitcoin's rally from April's low of $74,508 to the new all-time high of $119,999. Bitcoin is currently 10% away from the next potential bullish target. However, if Bitcoin faces a correction, it could extend the decline to find support around the lower boundary of a Fair Value Gap (FVG) at $115,222.

Derivatives market data shows that $76 million in shorts were liquidated in the last 24 hours as Bitcoin rallies towards the new peak. The long/short ratio, considered an indicator of derivatives traders' inclination towards bullish/bearish bets, exceeds 1. This means that more derivatives traders are bullish on Bitcoin and expect further gains in the cryptocurrency.

The surge in Bitcoin's price comes amid rising optimism over institutional inflows and momentum building around Bitcoin Core v30. This institutional endorsement arrives as Bitcoin climbed multiple all-time highs, surging past $118,856 amid massive buying pressure from spot ETFs. The cryptocurrency's price has been buoyed by optimism over growing institutional adoption, with ETF inflows topping $1 billion per day and whale accumulation at record levels.