Bitcoin News Today: Bitcoin Hits $122,884 All-Time High, Faces Consolidation Phase

Bitcoin, the world's leading cryptocurrency, has recently experienced a significant surge, reaching new all-time highs. However, according to Michael Harvey, the head of franchise trading at Galaxy Digital, the cryptocurrency may be entering a brief consolidation phase. Harvey believes that while Bitcoin could trend higher into the end of 2025, a pause for consolidation is likely given the recent rally and new all-time highs.

Harvey's best-case scenario for Bitcoin by the end of this month involves a continued slow melt-up, driven by strong inflows into US-based spot Bitcoin exchange-traded funds (ETFs), continued accumulation by Bitcoin treasury firms, and an aggressive increase in retail demand. However, there is still debate within the industry about whether retail demand has arrived yet. While Coinbase's recent jump to No. 137 on the US Apple App Store suggests that retail interest might be picking up, the low number of Google searches for "Bitcoin" indicates that broader retail demand hasn’t started.

Bitcoin reached a new all-time high of $122,884 on Monday, before retracing to $118,098 at the time of publication. However, Harvey also outlined a worst-case scenario for Bitcoin in the near term, where the price could drop back below $110,000. He believes that a risk-off move driven by profit-taking and/or equity market weakness could see Bitcoin retrace 5-10%.

Before Bitcoin broke its May all-time high of $112,000 on July 9, crypto analyst Rekt Capital warned that the current cycle may only have a few months of price expansion left, especially if it follows the same historical pattern from 2020. Rekt explained that if the Bitcoin cycle follows the 2020 pattern, the market will likely peak in October, which is 550 days after the Bitcoin halving in April 2024.

Bitcoin's recent rally, which saw the cryptocurrency breach the $120,000 mark, has taken a brief pause. This pause is likely due to profit-taking flows that have capped the momentum built over the past period. Analysts suggest that Bitcoin is "pausing here for air," but there is still a possibility of another all-time high (ATH) in July.

The total market capitalization of all cryptocurrencies hit $4 trillion, with Bitcoin's market cap swelling to $2.4 trillion and Ethereum's to $440 billion. This surge in market capitalization is driven by surging investor demand and a string of regulatory victories in the U.S. Bitcoin rose 1.4% in 24 hours to top $120,336, while Ethereum surged 6.4% to $3,647. Both assets have since retreated, with Bitcoin currently trading at $118,673 and Ethereum at $3,610.

The surge follows the bipartisan passage of the GENIUS Act, which creates the first federal framework for stablecoins, and the CLARITY Act, offering a legal structure for broader crypto assets. Both bills are expected to be signed by the President. On the same day, institutional investors poured $522.6 million into spot Bitcoin ETFs, extending a two-week streak of heavy inflows totaling over $4 billion.

Analysts believe the momentum will be sustained in the short-term, with other countries likely following the U.S. in setting clear crypto rules, leading to even more global adoption and institutional capital deployment. Ethereum's market dominance jumped from 9% to 11% while Bitcoin's share dropped 4 percentage points, signaling the start of "altcoin season" as investors rotate into higher-risk assets.

Bitcoin's climb to $120,336 comes after completing its strongest weekly performance since May. However, analysts are watching for consolidation signals. A pullback toward $110k, which marked the previous cycle high, may provide a more stable foundation for the current rally to consolidate.

Meanwhile, on a prediction markets platform, just 7.4% of users believe Bitcoin will close above $122,000 by 11:59 p.m. UTC on Friday. An overwhelming 94% majority have voted No, suggesting that traders are positioning for a near-term pullback or consolidation.