Bitcoin Surges 11% to $122,600 as Demand Outpaces Supply

Bitcoin reached an unprecedented high of $122,600 on July 14, 2025, marking a significant surge that has garnered substantial attention in the cryptocurrency market. This rapid ascent, characterized by minimal retracements, has prompted market participants to explore the underlying factors driving this remarkable performance and to speculate on its future trajectory.

The primary force behind Bitcoin’s rally is the significant demand-supply imbalance. With only 450 BTC produced daily, spot ETFs are acquiring 10,000 BTC in a single day, creating a 20-fold demand-supply gap. This imbalance, highlighted by Bitwise Investment Director Matt Hougan, is a key driver of Bitcoin’s price surge. The substantial volume flowing into institutional wallets has prevented the market from gaining immediate liquidity, further fueling the price increase.

BlackRock’s IBIT ETF has played a pivotal role in this record-breaking momentum. Over 200 trading days, this fund accumulated $84 billion in assets, achieving in less than a year what took the GLD ETF, based on gold, 15 years. With over 700,000 BTC in its portfolio, IBIT has solidified its dominant position, leaving its closest competitor 100,000 BTC behind. The robust institutional purchases have catalyzed an influx of individual investors, as exchanges struggle to meet the growing demand with limited supply and rapidly dwindling seller pools, propelling Bitcoin’s price to new peaks within seconds.

Despite high interest rates, the US dollar has depreciated by 11% over the past six months. Bitcoin, perceived as a safe haven, has simultaneously experienced a $10,000 increase. The House of Representatives’ passage of an expansive fiscal spending package on July 3 fueled inflation expectations, accelerating the shift of investors towards Bitcoin. Geopolitical developments, including President Donald Trump’s 50% tariff on copper and additional sanctions on Brazil, have redefined risk appetites. Investors are increasingly using Bitcoin to offset growing uncertainties in traditional markets.

According to Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, Bitcoin could reach $135,000 by the end of the third quarter and $200,000 by year-end amidst market turmoil. Hougan similarly indicated that continued demand pressure on supply opens the door to achieving the $200,000 target this year. The analysts' forecasts suggest that the current market dynamics and institutional interest could drive Bitcoin to even higher levels in the near future.