Bitcoin has recently surged past the US$120,000 (approximately AU$182,800) mark, setting a new record high of US$120,947 (around AU$184,278). This impressive increase of over 10% over the past week follows a prolonged period of narrow trading ranges, signalling a remarkable resurgence for the cryptocurrency.
Cryptocurrency analysts at CryptoQuant have observed no indications of market overheating. They noted “excessive selling from profitable short-term holders” and remarked that overall sentiment remains relatively subdued. This presents an interesting backdrop, suggesting that investors are not overreacting despite the price climb.
According to 10X Research, the latest all-time highs are not merely a result of speculative trading; rather, they reflect Bitcoin’s evolving role. Investors increasingly regard Bitcoin as a hedge against rampant US deficit spending, moving away from viewing it solely as a blockchain technology. This shift suggests that Bitcoin has matured into a macro asset, providing a safeguard amid financial uncertainties.
Analysts have identified key upcoming events that may further bolster Bitcoin’s status as a macro asset. Notably, a crypto policy report from former President Donald Trump is expected on 22 July, and the Federal Open Market Committee (FOMC) meeting on 30 July could provide critical insights into monetary policy decisions impacting cryptocurrency markets.
### US Spot Bitcoin ETFs Break Records
A major factor contributing to the surge in Bitcoin’s price is the increasing popularity and volume of spot exchange-traded funds (ETFs) in the United States, which hold the most significant quantity of Bitcoin compared to other nations’ ETFs.
Among these, BlackRock’s IBIT ETF has garnered attention for reaching new milestones. As reported last week, IBIT amassed over 700,000 BTC, and it recently achieved a remarkable US$80 billion (AU$121 billion) in assets under management. This rapid accumulation was accomplished in just 374 days, setting a record that eclipsed the previous one held by the Vanguard S&P 500 ETF, which took 1,814 days to reach its peak.
Moreover, the total amount of Bitcoin held by US ETFs has also hit a new high. Currently, these funds hold 6.039% of all Bitcoins, equivalent to 1,268,094 BTC valued at about US$153 billion (AU$233 billion). This growth represents a significant milestone in the adoption of Bitcoin as an asset class.
The eye-catching statistics surrounding Bitcoin and its increasing institutional adoption illustrate the growing maturity of cryptocurrency markets. Investors seem to be responding to Bitcoin’s emerging role as a hedge against economic volatility, reinforcing a narrative of long-term value rather than mere speculation.
As Bitcoin continues to capture the attention of traditional investors and financial institutions alike, the landscape of cryptocurrency investing is rapidly evolving, signalling an exciting future for digital assets.
### Conclusion
Bitcoin’s new all-time high of US$120,947 showcases a remarkable bull run, underpinned by broader acceptance as a macro asset and significant activity in the US Bitcoin ETF market. Analysts maintain an optimistic outlook, emphasising that the current market conditions do not exhibit signs of overheating, which may herald a sustained period of growth. With crucial events on the horizon that could shape market sentiment further, the cryptocurrency ecosystem remains poised for further developments.
