Bitcoin hits new all-time high above $121,000

1. Bitcoin sets a new record – but whats behind the numbers

On July 14, 2025, Bitcoin once again surprised the market by surpassing $121,300 — its highest price in history. The price surged nearly 3% within 24 hours, continuing a strong uptrend that has been forming since May. But is this a sign of a new growth cycle, or merely a temporary “bull trap”?

2. Growth drivers: Institutional inflows and spot ETFs surge

The key catalyst for this price rally is the significant capital inflow into spot Bitcoin ETFs, particularly in the U.S. Over the past 7 days, ETFs have attracted over $2.7 billion, signaling increased institutional interest.

In addition, major corporations such as Metaplanet (Japan) — following a strategy similar to MicroStrategy — are actively accumulating BTC. Metaplanet recently announced a purchase of 797 BTC (~$93.6 million), bringing its total holdings to over 2,500 BTC.

3. Technical analysis: Indicators show the trend remains strong

On the daily chart, Bitcoin has broken through the psychological resistance level of $118,000, forming a clear breakout candle. Key indicators such as MACD and RSI support the ongoing bullish momentum:

   • MACD: above the zero line, signaling strong buying momentum.

   • RSI: at 75, nearing overbought territory, but no bearish divergence has emerged.

   • Trading volume: continues to rise steadily, confirming bullish strength.

The next short-term price target could be in the range of $125,000 – $130,000, based on Fibonacci extensions and psychological resistance zones.

4. Macroeconomic factors: U.S. policy and long-term expectations

The U.S. government is showing a more accommodative attitude toward cryptocurrencies. During the recent “Crypto Week,” U.S. Congress is reviewing several important bills:

   • Genius Act: aims to support blockchain innovation.

   • Clarity Act: provides clearer legal definitions for digital assets.

These developments not only increase investor confidence but also pave the way for traditional financial institutions to deepen their participation in the crypto space.

5. Risks remain: Bull trap or the start of a supercycle?

While the current rally is impressive, some analysts warn it may be a bull trap — especially as many altcoins have yet to recover. For instance, Ethereum has not reclaimed its previous highs, and major altcoins like ADA, SOL, and XRP are still moving sideways.

Moreover, macroeconomic factors such as interest rates and U.S. CPI data may influence short-term market sentiment and investor psychology.

6. What should you do with bitcoin now?

Given the positive momentum from ETF inflows, technical indicators, and U.S. regulatory shifts, Bitcoin appears to have a solid foundation for a potential new bull run. However, investors should remain cautious of short-term volatility and closely monitor the broader altcoin market.

   • Long-term investors: may consider dollar-cost averaging if Bitcoin holds above $118,000.

   • Short-term traders: should apply tight stop-loss strategies and avoid FOMO buying after sharp price increases.