Bitcoin Surges 100% to New All-Time High of $112,000 on Policy Support and Institutional Buying

Bitcoin's price has surged to a new all-time high, exceeding $112,000. This significant increase is attributed to several factors, including growing support from policymakers, a weakening U.S. dollar, and strong institutional buying.

One of the key drivers behind Bitcoin's rise is the increasing support from U.S. policymakers. The CEO of Ripple recently testified before Congress in support of the CLARITY Act, which aims to provide clear regulations for the crypto industry. For the first time, all Senators on the panel agreed that crypto is here to stay and needs regulatory clarity. This shift in tone has given investors hope that the U.S. might finally embrace crypto innovation.

Adding to the excitement, the President is pushing for a significant 300 basis point rate cut, the largest in U.S. history. Lower interest rates often drive investors towards high-growth assets like Bitcoin, which could further boost capital inflow into crypto markets.

Another factor contributing to Bitcoin's surge is the weakening U.S. dollar. The Dollar Index is trading far below its 200-day average, a level not seen in over two decades. A weaker dollar often encourages investors to move money into alternative assets like Bitcoin, which is exactly what is happening now.

Institutional investors continue to show strong interest in Bitcoin. On July 9th, Bitcoin ETFs saw net inflows of $215 million, marking five consecutive days of steady new money coming in. Leading the pack was BlackRock’s IBIT with $125.6 million, followed by Ark Investment with $57 million and Grayscale with $15.8 million. This institutional buying is a clear indication of the growing acceptance of Bitcoin as a legitimate investment asset.

Additionally, over 114,500 traders were liquidated in the past 24 hours, with total losses hitting $515 million. The biggest single liquidation was a $51.5 million BTC-USDT order. Most of the liquidations came from short-term traders, losing about $451 million, while long-term holders lost around $64 million. This liquidation adds risk and fuels Bitcoin’s fast upward price movement.

In summary, Bitcoin's price surge to a new all-time high is driven by a combination of factors including growing support from policymakers, a weakening U.S. dollar, and strong institutional buying. The liquidation of short-term traders has also contributed to the upward price movement, adding risk and fueling the rally. The current rally is being driven by institutional investors rather than retail traders, as long-term holders have increased their holdings to a 15-year high. This shift in investor behavior suggests that Bitcoin is becoming a more accepted and less risky asset, further attracting institutional investors.