Bitcoin News Today: Bitcoin Surges 12% to $123,000 on ETF Hopes and Dollar Weakness

Bitcoin has recently surged past the $110,000 mark, spending approximately nine months below this threshold before finally breaking through to $123,000 this month. This significant move indicates substantial buying power and has sparked optimism among investors, who view it as the beginning of a larger upward trend.

According to EliteOptionsTrader, a crypto expert, several key factors are driving this surge. One of the most significant catalysts is the potential approval of a spot Ethereum ETF. Bitcoin's own ETFs have already attracted billions from major institutions, and the approval of an Ethereum ETF could further boost investment in the crypto market, thereby lifting Bitcoin prices.

Additionally, the recent US election and discussions about Federal Reserve rate cuts in late 2025 have fueled speculation about a weaker dollar. Many traders see Bitcoin as a hedge against political and economic uncertainties, further driving its appeal. Moreover, the limited exposure of hedge funds, sovereign wealth funds, and pension plans to Bitcoin suggests that increased allocation from these entities could push prices even higher.

Bitcoin's lengthy consolidation period under $110,000 has set a strong foundation for further gains. Historical data shows that breakouts after prolonged sideways action often lead to steep rallies. However, it is common for prices to dip back toward the breakout zone, and a pullback to around $115,000–$118,000 could occur before any major surge. Traders will be closely monitoring support at $118,000 and resistance near $125,000.

Despite the rally, major institutional players have only begun to enter the market. EliteOptionsTrader notes that a significant allocation from a large pension fund or insurance giant could trigger fresh price discovery. The April 2024 halving, which reduced Bitcoin's daily issuance by half, is also expected to have a delayed impact on demand, further supporting price increases.

While the outlook is optimistic, the path to $250,000 is not without risks. Sharp corrections of 10%–20% are common in the crypto market, and any unexpected regulatory changes could stall the current run. If Bitcoin can clear $127,000, the likelihood of a parabolic move increases significantly. According to the analyst's forecast, a test of $150,000 in the next few weeks is within reach. However, achieving the $250,000 target by the end of the year will require all factors to align without any major setbacks.

Bitcoin's latest breakout is exciting, but traders must remain vigilant about how it handles new support levels. While riding the trend can be profitable, managing risk is equally important. The current momentum suggests a bullish outlook, but caution is advised as the market navigates potential challenges ahead.