Bitcoin breaks through the 120,000 dollar mark, setting a new historical high

On July 14, the price of Bitcoin (BTC) strongly broke through the $120,000 integer mark, setting a new historical high. In this round of growth, active funds in the market and incremental funds outside the market formed a dual resonance, significantly heating up the market bullish sentiment.

Breakthrough of key range, funds and policies resonate to promote the market to continue rising

This week, Bitcoin has risen by 9.08%, not only reaching a historical high and breaking through the 120,000 USD mark, but also breaking through the consolidation range of 90,000 to 110,000 USD that has formed since November last year. On-chain data shows that over 30% of Bitcoin has been transferred within this range, which has long been regarded as a dense accumulation area for institutions and a pricing anchor for policy expectations.

This breakthrough not only has technical significance but also establishes a market consensus that Bitcoin is gradually becoming a strategic asset for the United States on a macro level. Especially against the backdrop of some politicians repeatedly expressing public support for Bitcoin and advocating for the establishment of national-level Bitcoin reserves, this price range has evolved into a symbol of policy signals. Once this area is effectively breached, it means that the market structure enters a new upward phase.

Institutional allocation continues to strengthen, ETF and mainstream assets resonate and evolve

The core driving force of this round of market trend comes from the deep changes in the funding structure. On the market side, the frequency of large transactions on major exchanges has significantly increased, the proportion of long-term holders continues to rise, the chip locking effect has strengthened, and the market selling pressure has significantly eased. At the same time, ETF funds continue to see net inflows, providing solid off-market support for the trend. According to public data, as of now, the cumulative net inflow of Bitcoin-related ETFs this month has reached 1.44 billion USD, and the overall management scale has surpassed 51 billion USD, becoming an important driving force for stabilizing and pushing up prices.

The maturation of the ETF channels has also led to a steady influx of traditional institutional funds. Long-term capital, including pensions and mutual funds, is now allocating Bitcoin through compliant channels, further enhancing the structural stability of the market, reducing volatility, and broadening the mainstream acceptance of assets.

The technical structure is robust, the trend continuation is strong, and short-term fluctuations are controllable.

Since breaking through the 100,000 USD level, the overall trend of Bitcoin has remained strong. After breaking through the 110,000 USD level with increased volume, the 120,000 USD level was also conquered due to the continuous increase in trading volume, indicating the persistence of a bullish dominance pattern. Currently, while the Relative Strength Index (RSI) is at a relatively high level, there are no obvious signs of overbought conditions, and the moving average system is clearly arranged, with the overall technical structure still supporting an upward trend.

In the short term, the market may still experience a correction, especially with attention needed on some funds taking profits, as well as uncertainties brought about by geopolitical conflicts, Federal Reserve policy expectations, and the U.S. elections. Against this backdrop, investors should maintain flexibility in their positions, manage risks wisely, and continually monitor the mid-term trends to either continue or adjust their pace.

Future Outlook: Regulatory Push Accelerates, Market Continuation with More Solid Fundamentals

Looking ahead to the market, as the pace of policy implementation accelerates, the foundation for maintaining a strong market continues to solidify. A series of cryptocurrency-related conferences currently taking place have become an important window for policy implementation. Three key bills, including stablecoin regulation, division of regulatory functions, and restrictions on central bank digital currencies (CBDCs), have entered the House of Representatives for review and are expected to complete voting within this week. Previously, an important bill was passed with a high vote in the Senate, clarifying the 1:1 reserve requirement for stablecoins and federal audit requirements, which provides significant support for the inflow of institutional funds and the expansion of payment scenarios.

The substantial progress in policy promotion provides clear institutional support for Bitcoin to break through $120,000, and further boosts the market's confidence in the path toward compliance and mainstream adoption. The current market situation is not only a technical breakthrough but also a concentrated reflection of global capital re-evaluating the long-term value of crypto assets.

In the short term, attention should be paid to the pace of policy implementation and market adjustment fluctuations. However, from a medium to long-term perspective, the mainstreaming of crypto assets has moved from trend judgment to the realization phase. The next round of market breakthroughs may arrive earlier and faster than the market expects.