Bitcoin Surges 10% to $122,056 Amid Macro Data and Institutional Inflows

Bitcoin’s recent price surge, which has seen it rally by nearly 10% from the $109k zone, has been driven by more than just market hype. The cryptocurrency has locked in five straight higher highs this week, with its price briefly hitting $122,056 before a slight correction. This strong underlying bid support suggests that there are real macroeconomic factors at play, rather than just speculative fervor.

One of the key macro signals driving Bitcoin’s price is the upcoming release of June’s macro data on July 15. According to analysts' forecasts, the core Consumer Price Index (CPI) is projected to rise by 0.3%, marking the largest month-over-month increase in five months. This increase can be largely attributed to the pass-through effects of recent tariffs, which have put upward pressure on import prices and, consequently, inflation.

Despite the potential for increased volatility around the CPI release, Bitcoin’s recent price action suggests that the market may be beginning to defy broader macro stresses. The cryptocurrency has seen a 12% weekly gain, even in the face of renewed tariff threats. This resilience could be a sign that macroeconomic uncertainty is actually fueling Bitcoin’s rally, as investors seek out risk assets in response to fiscal strain.

Bitcoin’s price action has been closely tied to Treasury yields and the strength of the U.S. dollar. The recent passage of Trump’s “Big Beautiful Bill” has coincided with a $15,000 jump in BTC, as markets respond to growing fiscal strain. The U.S. posted a $316 billion deficit in May alone, pulling capital out of bonds and into risk assets like Bitcoin. The 10-year yield hit 4.43%, a monthly high, as investors reassessed their risk.

This macro dislocation has created a unique environment for Bitcoin, where high interest rates may actually be a catalyst for further price gains. As import prices rise, inflation picks up, forcing the government to pay more in interest on its debt. Slower growth drags down tax revenues, reflected in a falling dollar. The result is a fiscal squeeze that’s driving capital into Bitcoin, with the cryptocurrency’s latest price action underlining this dynamic.

Bitcoin’s recent surge has also been driven by regulatory clarity and institutional inflows. The U.S. is preparing for “Crypto Week,” beginning July 14, with lawmakers expected to hold key hearings and votes on several digital asset-related bills. This wave of legislative activity is seen as a possible turning point for regulatory clarity, which could unlock greater institutional participation.

Bitcoin ETFs have attracted over $2 billion in inflows last week alone, underscoring rising demand from institutional investors seeking direct exposure to Bitcoin. Some firms, including Metaplanet, are following Strategy’s lead by adding Bitcoin to their Treasury reserves—a move that further solidifies the asset’s long-term appeal.

Technical analysts also view this Bitcoin breakout as significant momentum for the industry. Coin Bureau co-founder Nic Puckrin noted that Bitcoin has broken above a seven-year trendline on its monthly chart for the first time. That level had previously acted as resistance in past bull markets, particularly since 2018.

Despite some correction at press time, Bitcoin has rallied by nearly 10% from the $109k zone, locking in five straight higher highs this week. This milestone highlights Bitcoin's continued strength and resilience in the market. Bitcoin has reached a new all-time high, touching $119K as of July 11th, 2025. This surge now places Bitcoin as the fifth-largest asset globally by market cap, above major corporations.

While bulls celebrate the breakout, short traders are feeling the heat. The market’s rapid movement triggered $730 million in liquidations across the crypto space. Of that, nearly $444 million came from Bitcoin positions, with short trades accounting for $435 million of the losses. One trader lost close to $100 million on a single short bet. Notably, on-chain data from Hyperliquid also shows that crypto trader Qwatio was fully liquidated from his short position of 1,743 BTC, equivalent to $211 million, within three hours of the market breakout.

Interestingly, when priced in euros, Bitcoin has still not surpassed its high posted in January. This indicates that the recent surge is largely driven by factors specific to the US market, such as the upcoming legislative activity and institutional inflows.

The recent surge in Bitcoin's price, driven by regulatory clarity and institutional inflows, has strengthened the case for the cryptocurrency reaching new all-time highs. The upcoming legislative activity in the US and the strong demand from institutional investors are likely to continue driving Bitcoin's price performance in the coming weeks.