Bitcoin Hits $123,218, Market Capitalization Surges 20% to $2.4 Trillion

Bitcoin (BTC) reached an unprecedented peak of $123,218, pushing its market capitalization beyond $2.4 trillion. However, this milestone was followed by a sharp increase in Bitcoin inflows to exchanges, raising concerns about a potential short-term correction. According to a CryptoQuant Quicktake post by contributor Tarekonchain, Bitcoin is showing signs of short-term cooling. The exchange inflows spiked right after Bitcoin hit its new all-time high, indicating profit-taking behavior by short-term holders and some whales.

This on-chain activity is typically indicative of a local top that could lead to a healthy price correction or consolidation in the coming days. The analyst noted that despite these warning signs, the overall market structure remains largely bullish. Long-term holders are still holding their BTC, not keen on selling at current price levels. Additionally, spot Bitcoin exchange-traded funds (ETFs) continue to attract strong capital, with $2.72 billion in net inflows for the week ending July 11, indicating ongoing institutional interest.

In a separate post, CryptoQuant contributor Crazzyblockk pointed to an uptick in whale activity on Binance. The Binance Whale Activity Score shows that deposits from large wallets have spiked dramatically. Whales reportedly deposited as much as 1,800 BTC to Binance in a single day, with more than 35% of transactions valued at over $1 million, hinting at strategic positioning ahead of expected volatility. This sell-side pressure on Binance is likely to weigh on BTC’s bullish momentum.

Despite rising inflows and increased whale activity, market sentiment remains broadly positive. Retail investor participation is still muted compared to previous bull runs, suggesting the current rally might still have room to grow. At press time, BTC trades at $119,449, up 0.8% in the past 24 hours. The recent rebound in Bitcoin's price is primarily attributed to institutional investors, who have been driving significant inflows into exchange-traded funds (ETFs). On July 10 and 11, U.S. spot Bitcoin ETFs attracted $1.18 billion and $1.03 billion, respectively, bringing cumulative inflows to a record $52.36 billion. Ethereum funds also recorded substantial inflows, with the all-time total now exceeding $5.3 billion.

Some industry participants suggest that the high price of Bitcoin may be deterring regular investors. Digital asset advocate Lindsey Stamp noted that many retail traders might feel they have missed their chance to invest in Bitcoin, given its current valuation of around $117,000. Cedric Yangelman, host of the Bitcoin Matrix podcast, expressed skepticism about a near-term revival of retail interest in Bitcoin. He believes that Bitcoin may not attract retail investors for an extended period. According to Xapo Bank CEO Seamus Rocca, market cycles of new all-time highs followed by deep corrections remain consistent. He cautioned that the risk of a prolonged bear market is very real and does not require a catastrophic event to trigger it. Simple factors such as a general slowdown in news, negative developments, or planned rebalancing of portfolios could spark the next downturn.

Rocca emphasized that while Bitcoin is often seen as an inflation-protection tool, it is still a very risky asset. He noted that the correlation between Bitcoin, the S&P 500 index, and stocks remains strong. Rocca also highlighted the potential for a "contagion effect" that could drain all the news from the market, leading the crypto sector to exhaust its potential in a natural and lengthy process. He disagreed with the notion that institutionalization has eliminated Bitcoin's cyclical nature, stating that the asset's volatility and risk profile remain significant factors.

Despite Bitcoin's record-high prices, the relatively stable search volume on Google Trends suggests a lack of widespread public excitement or curiosity about the digital asset. Over the past five years, the search term "Bitcoin" scores a 24 out of 100 on Google Trends, with the peak popularity occurring in May 2021. Over the past 12 months, the query clocks in at 35 out of 100—a modest level. However, as the timeline narrows, interest does tick higher, suggesting curiosity is growing, albeit at a slower pace. For example, over the 90-day span on Google Trends, interest in Bitcoin climbed to 88 on July 11, 2025, with the most recent peak of 100 on that timeframe occurring back on May 22, 2025. As of July 13, the score has cooled to 55 out of 100.

Some observers believe that Bitcoin’s high price tag may be deterring potential newcomers. With headlines touting six-figure valuations, many assume they’ve missed the opportunity to invest or that owning Bitcoin requires a massive upfront investment. However, this perception is misleading. Bitcoin is divisible down to eight decimal places, meaning anyone can buy a fraction of a coin—no need to fork over $119,000. This divisibility allows users to participate in the counter-economy at any scale, whether it’s $10 or $10,000. Bitcoin isn’t just for whales—it’s for anyone seeking an alternative to traditional financial systems and a hedge against fiat value depreciation.

Bitcoin’s price may be rewriting records, but the relatively muted search data hints at a market moving with less retail frenzy and more measured conviction. Whether this signals a shift toward broader adoption or simply a quieter phase in Bitcoin’s evolution remains to be seen. Either way, price alone no longer seems to be the main driver of public interest. The lack of public interest in Bitcoin's price surge could also be attributed to the fact that the cryptocurrency has been in the public eye for several years now, and its price movements have become less of a novelty. Additionally, the increasing institutional adoption of Bitcoin may be contributing to the lack of public interest, as large investors and corporations are more likely to be driving the price rally than individual retail investors.