Bitcoin Surges 69% to $118,404 on Institutional Demand and Supply Scarcity

On July 11, 2025, Bitcoin's price soared to an unprecedented high of $118,404, driven by substantial institutional interest and a diminishing supply on exchanges. This surge was bolstered by a steady inflow of institutional funds, billions of dollars in ETF investments, and discussions about the U.S. potentially maintaining a national Bitcoin reserve. The depreciating dollar and expectations of Federal Reserve interest rate cuts further enhanced Bitcoin’s appeal as a hedge asset. Market observers, noting that the Relative Strength Index (RSI) remained below the overbought threshold, speculated that the next price milestone could reach $130,000.

Major asset managers such as BlackRock, Fidelity, and VanEck have significantly contributed to the Bitcoin market by investing heavily in spot Bitcoin ETFs. Data from CryptoQuant indicates a growing trend of Bitcoin being transferred off exchanges and into secure wallets, thereby tightening the available supply. This movement by both institutional investors and individual buyers restricts Bitcoin’s circulating supply, increasing its scarcity.

As institutional enthusiasm grows, Bitcoin’s status as “digital gold” is increasingly recognized, enriching long-term portfolios. The surge in demand from ETFs absorbs the current supply, while ongoing short position liquidations drive further price increases. The continuous decline of Bitcoin on exchanges, coupled with rising global trade volumes, renders Bitcoin progressively rare.

The combination of anticipated rate cuts by the Federal Reserve and a weaker dollar has positioned Bitcoin as a “safe haven,” significantly boosting its demand. The price range around $108,000, once a resistance zone, has shifted to a critical support level due to short but vigorous price rises. From a technical standpoint, the RSI not yet hitting overbought levels suggests the price may continue to rise. A stable price above $120,000 could push Bitcoin into a discovery phase, aiming for $130,000. However, a dip below $107,000 might indicate potential price fatigue, though the broader economic landscape supports resilience and recovery.

Key insights include institutional investments significantly affecting supply dynamics, increasing ETF inflows consolidating Bitcoin’s position in long-term holdings, technical indicators suggesting potential for further price growth, and the macroeconomic environment supporting a robust Bitcoin market. Despite potential fluctuations, Bitcoin’s current trajectory shows strong resilience supported by favorable macroeconomic conditions, positioning it as a durable and valuable asset in modern financial portfolios.

Bitcoin has recently experienced a significant rally, with its price surging from $70,000 to over $118,000, marking a substantial increase in a relatively short period. This bull run has been characterized by steady price increases and declining volatility, aligning more closely with traditional financial markets. The surge in Bitcoin's price has been driven by surging demand and a shrinking supply, with the cryptocurrency hitting a new all-time high above $118,000. This price increase has caused over $1 billion in short liquidations across major exchanges, as traders who had bet on a price decrease were forced to close their positions at a loss.

The price of Bitcoin has been on a steady upward trajectory, with the cryptocurrency topping $116,000 and $113,000 at different points in its recent rally. The surge in price has been accompanied by a decline in Bitcoin's dominance, which fell to 64.61% on July 10, 2025, down 0.24% within the 3-day timeframe. This decline follows a technical break below a rising wedge pattern, which some analysts had predicted would lead to a price correction. However, the price of Bitcoin has continued to rise, defying these predictions.

The recent rally in Bitcoin's price has been driven by a combination of factors, including increased demand from institutional investors and a shrinking supply of the cryptocurrency. As the supply of Bitcoin decreases, its scarcity increases, driving up its price. This dynamic has been exacerbated by the fact that many Bitcoin holders are unwilling to sell their holdings, preferring to hold onto the cryptocurrency in the hope of further price increases. This has led to a situation where demand for Bitcoin is outstripping supply, driving up its price.

The recent rally in Bitcoin's price has also been accompanied by a wave of bullish momentum across risk assets, as investors have become more optimistic about the prospects for the global economy. This has led to a surge in demand for riskier assets, including cryptocurrencies, as investors seek to capitalize on the potential for further price increases. The recent rally in Bitcoin's price has been driven by a combination of factors, including increased demand from institutional investors and a shrinking supply of the cryptocurrency. As the supply of Bitcoin decreases, its scarcity increases, driving up its price. This dynamic has been exacerbated by the fact that many Bitcoin holders are unwilling to sell their holdings, preferring to hold onto the cryptocurrency in the hope of further price increases. This has led to a situation where demand for Bitcoin is outstripping supply, driving up its price.