Bitcoin Hits $122,205 All-Time High Amid Institutional Investments

Bitcoin reached a new all-time high of $122,205 during early Asian trading hours on July 14, despite former U.S. President Donald Trump's recent tariff threats. This surge continues Bitcoin's strong performance throughout the year, driven by significant institutional investments and an increasing trend of corporate treasury allocations. According to Bitwise’s Q2 2025 data, 159,107 Bitcoin (BTC) were added to the balance sheets of 46 newly listed public companies, underscoring the growing institutional interest in the cryptocurrency.

Spot Bitcoin exchange-traded funds (ETFs) managed by prominent firms have also seen substantial inflows, further propelling the asset's momentum. The weakening U.S. dollar, with the Dollar Index sitting more than six points below its 200-day moving average, has also contributed to Bitcoin's upward trajectory. Recent policy developments in the U.S., including the Senate's passage of a stablecoin regulation bill in June and renewed discussions around creating a Strategic Bitcoin Reserve, have boosted confidence among large investors.

However, the rally has occurred against a backdrop of escalating global trade tensions. On July 13, Trump announced plans to impose 30% tariffs on imports from Mexico and the European Union, two of America’s largest trading partners. Both regions are preparing to respond, with the European Commission threatening countermeasures by early August if no deal is reached. Trump's arguments for more “balanced and fair” trade deals have been met with warnings from EU leaders about potential economic damage.

Historically, such trade tensions have had a destabilizing effect on the cryptocurrency market. Yet, Bitcoin has remained relatively unaffected, with over $2 billion in new capital flowing into digital assets this month. Traders appear more focused on on-chain flows and ETF data than on geopolitical headlines, indicating a shift in market sentiment towards long-term fundamentals.

Upcoming U.S. inflation data could, however, alter this focus. On July 16, the Bureau of Labor Statistics is set to release June consumer price index data. Economists expect core inflation to rise by 0.3%, pushing the annual rate to 2.9%. If confirmed, this could pose challenges for risky assets like Bitcoin and potentially delay Federal Reserve interest rate reductions. Investors will be closely monitoring whether tighter monetary policy impacts Bitcoin's rally, which has so far shown remarkable resilience.