Bitcoin Surges 13% in July Reaching $122,393 on Institutional Demand

Bitcoin achieved a new milestone on July 14, reaching $120,000 on Coinbase at 2:47 am UTC. The cryptocurrency extended its July rally with a 13% gain for the month. Bitcoin currently trades at $122,393, marking a decisive break above previous resistance levels. The flagship digital asset is on track to close its third consecutive green monthly candle.

Institutional investment has been a major driver of the recent price surge. BlackRock’s spot Bitcoin exchange-traded fund, IBIT, reached a record $83 billion in assets under management on Thursday. IBIT’s growth has been unprecedented in ETF history. The fund tripled its assets in just 200 trading days, compared to 15 years for the gold ETF GLD to achieve the same milestone. BlackRock’s Bitcoin ETF now holds over 700,000 BTC in custody. This surpasses MicroStrategy’s holdings by nearly 100,000 BTC, establishing it as one of the largest institutional Bitcoin holders.

Onchain metrics indicate Bitcoin hasn’t entered a state of market overheating. The Long-Term Holder Net Unrealized Profit/Loss metric sits at 0.69, below the 0.75 threshold historically associated with peak euphoria. This cycle has only spent about 30 days above the 0.75 level. The previous cycle saw 228 days in this overheated zone, suggesting potential for higher price targets. Daily Bitcoin transactions have shown steady growth without signs of panic selling. Average daily transactions climbed from 340,000 to 364,000 over the past two days. These transaction levels remain well below the 530,000 to 666,000 peaks seen during previous market tops. Accumulator addresses have significantly increased their Bitcoin holdings over the past month. These wallets, which consistently acquire BTC without major outflows, now hold 250,000 BTC. This represents the highest accumulation level of 2024. The 30-day demand jumped 71% from 148,000 BTC in late June.

Charles Edwards, CEO of digital asset hedge fund Capriole Investments, argues the market is in early stages of a liquidity-driven boom. His analysis points to several converging macro factors supporting Bitcoin’s rise. Global investors have been betting against the US dollar according to Capriole’s USD Positioning gauge. The metric has been deeply negative since early summer, favoring hard assets like Bitcoin. Corporate bond spreads have been tightening since spring, indicating increased risk appetite in traditional markets. Edwards notes this has mapped closely to Bitcoin price movements since 2020. Global M3 money supply has been expanding at an annualized 9% rate. Capriole research shows similar monetary expansion periods historically coincided with average 12-month Bitcoin returns of 460%. The emergence of Bitcoin Treasury Companies represents a new dynamic in this cycle. These corporate vehicles raised $15 billion in Q2 alone, with at least 145 firms now pursuing this strategy. Gold’s breakout in early 2025 provided another bullish signal for Bitcoin. Historical patterns show Bitcoin typically follows gold breakouts by three to four months. Equity markets are also flashing green lights for risk assets. The NYSE advance-decline line reached new highs last week while other equity indicators reset to levels consistent with expanding risk appetite. Capriole’s Bitcoin Macro Index remains in strong positive growth territory despite the recent vertical price move. This composite indicator suggests underlying market drivers remain intact for continued gains.