Bitcoin Surges 8% to $118,913 Driven by Institutional Inflows

Bitcoin has recently experienced a significant surge, reaching new all-time highs (ATH) and driving broader interest in the cryptocurrency market. The cryptocurrency's price has soared to $118,913, marking an 8% increase within a 24-hour period. This upward momentum has been fueled by strong institutional inflows and renewed investor confidence, with exchange-traded funds (ETFs) and institutional investors playing a pivotal role in the price discovery phase. The surge in Bitcoin's value has also boosted other cryptocurrencies, such as Ether, which hit a one-month high, reflecting a growing interest in digital assets as a means of achieving high returns and economic protection.

Despite the positive outlook, investors remain cautious, monitoring potential economic shifts and regulatory debates surrounding digital assets. The ongoing debates about regulation and its role in the global economy have added a layer of uncertainty to the market. Supporters argue that the current market cycle is different, thanks to stronger regulations, wider institutional involvement, and more stable capital foundations. However, the Securities and Exchange Commission (SEC) is working on updating its rules for cryptocurrencies, acknowledging that Bitcoin transactions will bring in significant tax revenue.

The surge in Bitcoin's price has also been attributed to strong macroeconomic tailwinds, with some analysts pointing to factors such as economic policies. The growing connection between tech stocks and cryptocurrencies reflects the current “risk-on” mentality, with investors putting money into high-growth sectors despite ongoing global risks. Short-term options suggest further growth, with many traders betting on Bitcoin reaching $115,000 or $120,000 by the end of July. However, there are also warnings of a potential dip below $107,000, as market dominance tests 2020 resistance levels. Some analysts predict a decline in Bitcoin's price post-$120,000, which could affect the overall market.

According to data analysis from Sentimentrader, the vast majority of coins are currently not in their all-time high range (within 5% of their high in the past 252 days). In contrast, when Bitcoin hit new highs in February and November 2024, approximately 75% and about 40% of cryptocurrencies were within 5% of their 252-day highs, respectively. Historically, when a large number of cryptocurrencies are trading near their all-time highs, Bitcoin tends to pull back. The current divergence suggests that Bitcoin may still have more room to grow.

The ongoing crypto rally has been beneficial for new players and companies that use digital assets as part of their financial strategy, helping them access more financing options and merging the world of cryptocurrency with traditional financial markets. Roman Trading, a prominent figure in cryptocurrency analysis, has accurately predicted several major downturns over the last eight weeks. Despite a recent miscalculation at the $98,000 mark, Roman now fervently believes the bull market is nearing its end, asserting the onset of a decline as Bitcoin reaches new record heights. Today, as BTC sets another ATH, he maintains his anticipation of a reversal. According to Roman, the ultimate peak will reach $120,000 before BTC potentially dips below the $90,000 benchmark. “Looking at BTC’s weekly chart, I’m convinced we’re at the end of this bull run, even if a bit more upside remains. The bearish RSI and MACD, along with declining volume and rising prices, suggest a bearish outlook. Until the long-term perspective shifts, my stance remains unchanged. It’s that straightforward.”

Outside of Roman Trading and Capo, few analysts anticipate a drop. Many analysts continue to reiterate their predictions from six months ago, expressing a “told-you-so” sentiment. Nic, on the other hand, argues that continued growth is foreseeable as many investors remain skeptical and have stayed on the sidelines. He predicts a considerably different scenario at the $130,000 level. Pentoshi has conveyed his expectations for the continued upswing, attributing this perspective to Coinbase’s premium rates and the high demand in the US market.

As this article concludes, BTC has once again risen, hitting a new high of $113,788. This scenario aligns with analysts’ long-discussed notion of a “price discovery phase,” indicating BTC’s rise toward its true peak, potentially persisting without unexpected setbacks. The $110,000 mark is crucial as a support level, with increased activity anticipated nearing daily closures. The MVRV Oscillator data points to continued upside potential without major overheating concerns, fueling confidence that this breakout could extend further. Exchange flows hit a three-year low at $2.39 million, while analysts predict Bitcoin could reach $120,000 by month-end.