Bitcoin Surges 12% to $122,600 on Institutional Demand and Geopolitical Tensions

Bitcoin has surged past $122,600, marking a new record high. This upward trajectory is driven by several key factors, including institutional demand, limited supply, and geopolitical influences.

One of the primary drivers behind Bitcoin's surge is the growing demand from institutional investors. The daily supply of newly mined Bitcoins is extremely limited, with only 450 new Bitcoins being mined each day. However, the demand from spot ETFs has been significantly higher, with 10,000 BTC being scooped up in a single day, which is 20 times more than the daily supply. This imbalance between supply and demand is a major factor pushing prices up rapidly.

BlackRock’s Bitcoin ETF, known as IBIT, has become a significant player in the market. It has reached $84 billion in assets under management in just 200 trading days, a feat that took the gold ETF (GLD) over 15 years to achieve. IBIT now holds more than 700,000 BTC, making it the largest holder by far, nearly 100,000 more than its next closest competitor.

The U.S. dollar has fallen by 11% in just six months, while Bitcoin has surged more than $15,000 since July began. This sudden push came right after the U.S. House approved President Trump’s “Big Beautiful Bill” on July 3rd, signaling that big spending was here to stay. This made Bitcoin, which many see as digital gold, look even more attractive. Geopolitical tensions are also playing a role, with U.S. President Donald Trump imposing 50% tariffs on copper and targeting Brazil with penalties, further boosting Bitcoin's appeal as a safe haven.

Some market watchers believe that Bitcoin has now entered what they’re calling “crisis mode.” Geoff Kendrick, head of digital asset research at Standard Chartered, predicted that Bitcoin could reach $135,000 by the end of Q3 and possibly hit $200,000 by year-end. Bitwise’s Matt Hougan also believes that if the current gap between strong demand and limited supply continues, Bitcoin’s price could climb toward the $200,000 mark by the end of the year.