Bitcoin Surges 0.27% to $118,146 as Institutional Demand and Regulatory Support Fuel Rally

Bitcoin has recently surged past the $118,000 mark, driven by a combination of factors including institutional demand, ETF inflows, and favorable regulatory policies. This significant milestone is underpinned by structural changes in the market, with long-term holders now controlling approximately 75% of Bitcoin’s total supply. This figure marks an all-time high, indicating deep investor conviction and a decrease in short-term speculation. Historical data shows that similar long-term holder supply levels often precede major rallies, suggesting that Bitcoin may have more room for price appreciation.

The correlation between rising long-term holder supply and price movement is evident. Bitcoin tends to gain strength during accumulation phases, as reduced liquid supply limits downward pressure. Analyst Mikybull noted this trend supports a “more room for higher” price outlook. The current supply structure, marked by tightening availability, creates a bullish setup as distribution weakens.

Institutional interest in Bitcoin is accelerating, driven by demand from spot Bitcoin ETFs. On July 10, ETFs absorbed nearly 10,000 BTC in a single day. This figure far exceeds Bitcoin’s daily issuance of 450 coins, underscoring extreme demand pressure. Matt Hougan of Bitwise said July 10 marked the second-largest net ETF inflow day ever. He projected that 2025 ETF flows could outpace those of 2024 by a wide margin. This spike in institutional activity has fueled market speculation that Bitcoin may reach $200,000 by year-end. As supply tightens and accumulation rises, bullish momentum continues to build.

Bitcoin surged to $118,146, posting gains of 0.27% in a two-hour period. The move confirmed a breakout from a key resistance range between $111,000 and $112,500. This zone has now flipped into support, reinforcing positive sentiment and strengthening the current uptrend. The rally began on July 10, when sideways trading gave way to sustained buyer pressure. Bitcoin added over $7,000 in value with strong green candles and minimal retracement. Currently consolidating just under $119,000, the market faces resistance at the $120,000 level. Should momentum fade, traders expect a potential retest of the $112,000–$113,000 support range.

The regulatory environment has also played a significant role in Bitcoin's recent surge. Pro-Bitcoin policies have created a more favorable landscape for institutional investment, leading to increased demand and higher prices. This regulatory support, combined with the limited supply, has created a perfect storm for Bitcoin's price to break through the $118,000 mark. The tightening supply is not just a result of lost coins but also due to the behavior of long-term holders and institutional investors. These entities are holding onto their Bitcoin, reducing the amount available in the market. This behavior is further exacerbated by the halving event, which is scheduled to occur in late March or early April 2028. The halving will cut the block reward in half, making Bitcoin even harder to produce and further tightening the supply.

The halving event has historically been a significant catalyst for Bitcoin's price. In the past, Bitcoin has seen substantial gains in the lead-up to the halving event, as investors anticipate the reduced supply. This pattern is expected to repeat in the coming years, with analysts predicting that the price could continue to rise as the halving approaches. The current bullish momentum is also supported by the increasing adoption of Bitcoin by corporate treasuries and long-term holders. These entities are purchasing Bitcoin in large quantities, further tightening the supply and driving up the price. The limited supply, combined with the increasing demand, has created a scenario where Bitcoin's price is being driven higher by fundamental market forces.

The future of Bitcoin's price will depend on a variety of factors, including the continued demand from institutional investors, the regulatory environment, and the behavior of long-term holders. However, the current trends suggest that Bitcoin's price could continue to rise in the coming years, driven by the limited supply and increasing demand. The bullish momentum is fueled by the increasing adoption of Bitcoin by institutional investors and the launch of various ETFs that track the cryptocurrency. These ETFs have seen substantial inflows, which have contributed to the tightening of supply. The limited supply, coupled with rising demand, has created a scenario where Bitcoin's price is being driven higher by fundamental market forces rather than short-term speculation.