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Bitcoin Breaks Record High, Reaches $122,600 – Here’s Why
The price of Bitcoin has skyrocketed to a new record high, breaking the $122,600 mark as institutional demand far surpasses newly mined coins. Several key factors have contributed to this unprecedented surge.
First and foremost, it is crucial to note that there is an imbalance in the market between supply and demand. According to Matt Hougan, Director of Investments at Bitwise, the demand from institutions has been overwhelming, exceeding the limited daily Bitcoin supply by a considerable margin. To put things into perspective, only 450 new Bitcoins are mined each day, whereas institutions have bought a staggering 10,000 BTC in spot ETFs alone, which is more than 20 times the available supply.
Furthermore, BlackRock’s Bitcoin ETF (IBIT) has become an unstoppable force, reaching a record $84 billion in assets under management in just 200 trading days. This surpasses the gold ETF’s similar achievement by over a decade and a half. IBIT now holds a staggering 700,000 BTC, cementing its position as the largest holder.
Concurrently, the U.S. dollar has seen an 11% decline within six months, which, in turn, has amplified Bitcoin’s appeal as a hedge against inflation and spending. This shift is particularly notable given that the interest rates are rising.
Moreover, the pro-crypto stance of Donald Trump has also played a pivotal role in this surge. Following the U.S. House’s approval of his “Big Beautiful Bill” on July 3rd, many have viewed Bitcoin as an attractive asset for safe-haven investments.
As for where Bitcoin could be headed next, some market analysts are suggesting that it may have entered “crisis mode.” Meanwhile, Geoff Kendrick, head of digital asset research at Standard Chartered, has predicted a price hike to $135,000 by the end of Q3 and potentially reaching $200,000 by year-end. Bitwise’s Matt Hougan also believes that if this demand-supply gap persists, Bitcoin could climb towards the $200,000 mark by the end of the year.
To put things into perspective, Bitcoin is currently on a nearly straight line upward trajectory.
Source: coinpedia.org
