Bitcoin Surges 7% to $118,661 as Crypto Market Rallies 5%

Crypto markets have recently experienced a significant surge, with Bitcoin (BTC) reaching new all-time highs. On Friday, the price of Bitcoin climbed by more than 7%, peaking at $118,661. This marked its first record high of the week, following a previous high set on Wednesday. The surge in Bitcoin's price was driven by a broader trend of investors moving into riskier assets, which sent bullish signals across both crypto and tech markets. The cryptocurrency's price reached an unprecedented $118,856 on July 10, surpassing its previous peak of $111,560. This surge was not an isolated event; Bitcoin had already set a new all-time high on Thursday, surpassing $116,000 and nearly doubling over the past year.

The surge in Bitcoin's price was accompanied by a broader rally in the crypto market, with the overall market soaring by 5%. This rally was driven by substantial demand from institutional investors, who have been increasingly investing in cryptocurrencies. The surge in Bitcoin's price has also lifted industry stocks ahead of a landmark week that could cement policy wins for the crypto industry. The crypto market is facing significant macroeconomic headwinds, amid mounting concerns about trade tariffs and rising government debt. However, the surge in Bitcoin's price suggests that investors are optimistic about the future of the crypto market.

According to the analyst's forecast, Charles Hoskinson predicts that Bitcoin could hit $250,000 by 2026, fueled by regulatory clarity and institutional investments. The surge in Bitcoin's price has also triggered a significant amount of short selling, with $950 million in short positions being liquidated. This suggests that many investors had bet against Bitcoin's price surge, and were caught off guard by the cryptocurrency's rapid appreciation. The surge in Bitcoin's price has also had a ripple effect on other cryptocurrencies, with many altcoins also experiencing significant gains. This suggests that the overall crypto market is in a bullish phase, and that investors are optimistic about the future of digital assets.

While there’s no announcement on Powell yet and an EU tariff agreement remains unseen, numerous “landmines” threaten to reverse this rise. However, as long as BTC remains robust, there’s no cause for concern. Considering the crypto market‘s unpredictable nature, it’s prudent to balance risk. Profit realization might mitigate potential losses, yet one must weigh that against missing further gains. The surge in Bitcoin's price has also raised questions about the sustainability of the crypto market's rally. Some analysts have warned that the crypto market could be in a bubble, and that a correction is inevitable. However, others have argued that the surge in Bitcoin's price is a reflection of the cryptocurrency's underlying value, and that it is here to stay.

Data have long suggested the onset of an upward trend in the cryptocurrency markets. For months, numerous metrics indicated more was to come. Yet, the inherent unpredictability of cryptocurrencies is crucial for both profit and loss. Even if data promises a certain rise, the exact timing remains uncertain. Take this week, for example. Data supported the notion that a rise should commence, including persistent net inflows in the ETF channel. However, the surge occurred despite news flows predicting a downfall, as cryptocurrencies relish surprises. Short-sellers anticipating a market drop got blindsided by a market turnaround.

One analyst notes that should the $935 billion barrier be breached, smaller market-cap altcoins might achieve gains reminiscent of 2021. While there’s no announcement on Powell yet and an EU tariff agreement remains unseen, numerous “landmines” threaten to reverse this rise. However, as long as BTC remains robust, there’s no cause for concern. Considering the crypto market‘s unpredictable nature, it’s prudent to balance risk. Profit realization might mitigate potential losses, yet one must weigh that against missing further gains. The chart above reveals that long-term holders are accumulating assets faster than miners produce new BTC. LTH supply surpasses monthly supply, firming up the market with this supply squeeze. Kyle observes that this detail is overlooked. Kyle states, “These are not speculators. Unwavering seasoned investors don’t flinch at $118,000. When the next rise hits, it will be resounding.”