Bitcoin News Today: Bitcoin surges past $123,000 on institutional demand and U.S. policy shift

Bitcoin’s recent performance has shattered previous benchmarks, with prices surging past $123,000 this week and eclipsing the July high. The meteoric rise is being driven by robust institutional demand, increasing corporate adoption, and supportive U.S. policy developments, all reinforcing the argument for a $150,000 price target by year-end [1].

The cryptocurrency has appreciated over 31% in 2024 and is currently about 60% above its April trough. This growth is not solely attributed to speculative fervor but is underpinned by fundamental shifts in how both private and public sectors perceive Bitcoin [1]. Institutional flows have reached unprecedented levels, with U.S. spot Bitcoin ETFs such as BlackRock’s IBIT and Fidelity’s FBTC seeing massive trading volumes. IBIT alone recorded $3.7 billion in a single day, while FBTC hit over $500 million in the same period. These figures represent sustained capital inflows from professional investors seeking long-term appreciation [1].

Corporate entities are also ramping up their Bitcoin exposure. Michael Saylor’s company, for example, reported Bitcoin holdings valued at $77.2 billion, a $35.4 billion increase from its previous peak. These holdings are viewed as strategic assets, delivering significant value for shareholders [1]. At the national level, El Salvador’s Bitcoin investment has appreciated from $300.5 million to over $768 million, producing an unrealized gain of more than $468 million. These results provide a compelling case for other governments to consider Bitcoin as a viable sovereign asset [1].

U.S. policy developments are also aligning with Bitcoin’s favor. President Donald Trump’s recent executive order directed the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies. This shift could unlock a massive new pool of retirement capital into the market, reinforcing Bitcoin’s place in mainstream finance [1]. Analysts note that while volatility is expected given the rapid price movement, the underlying structural factors remain strong. Institutional investors and corporate treasuries are locking in long-term positions, and sovereign portfolios are demonstrating measurable returns. These forces are tightening the supply-demand dynamic and supporting the asset’s scarcity-driven value proposition [1].

Bitcoin’s capped supply of 21 million coins means that rising demand naturally leads to upward price pressure. Large institutional and sovereign buyers, which typically purchase in bulk and hold for the long term, further reduce market liquidity. Recent pullbacks have been met with aggressive accumulation, driven by deep-pocketed investors with strategic goals rather than speculative traders seeking short-term gains [1].

The broader macroeconomic environment also supports Bitcoin’s rally. Anticipation of looser monetary policy has increased the appeal of assets with store-of-value properties. As interest rates are expected to decline, capital is shifting toward assets perceived to preserve purchasing power. Bitcoin is increasingly seen as a hedge against currency depreciation, gaining traction among both institutional and retail investors [1].

With policy, liquidity, and adoption all converging in Bitcoin’s favor, the argument for a $150,000 price target by year-end is becoming stronger. While the path may involve corrections and periods of consolidation, these are normal features of a healthy bull market. The buyers currently dominating the market are focused on long-term positioning rather than short-term speculation, which bodes well for sustained upward momentum [1].

Sources: [1] Bitcoin: Record-Setting Run Builds Case for $150,000 Year-End Target (https://www.investing.com/analysis/bitcoins-record-run-strengthens-150000-yearend-target-200665313)