On July 10th, in the early hours, Bitcoin first reached $112,000, setting a new historical high, with an intraday increase of up to 3%. So far this year, the increase is about 19%. The resurgence of Bitcoin above $110,000 is the result of multiple factors working together, as detailed below:
• Macroeconomic Environment: There are global concerns about the surge in the U.S. government's fiscal deficit, while a global wave of selling U.S. Treasury bonds has prompted some investors to view Bitcoin as a safe-haven asset, increasing demand and driving up prices. Additionally, the continuous depreciation of the dollar has strengthened Bitcoin's role as digital gold, attracting more funds into the Bitcoin market.
• Market Supply and Demand Relationship: The total supply of Bitcoin is fixed at 21 million coins. Over time, the difficulty of mining new Bitcoins continues to increase, gradually slowing the supply growth. However, market demand is rising as investors increasingly view it as a safe-haven asset, creating a situation of supply scarcity that drives prices up.
• Institutional Capital Driving: In 2025, several mainstream financial institutions launched Bitcoin ETF products, and Wall Street capital has been continuously increasing its positions, providing significant funds to the market. According to Glassnode data, the non-liquid supply of Bitcoin has reached a historical peak, indicating that the current Bitcoin price surge is supported by important forces such as institutional capital.
• Market Sentiment Factors: The continuous rise in Bitcoin prices and the previous record highs have attracted more investor attention, leading to optimistic market expectations. This positive market sentiment encourages more investors to buy Bitcoin, further driving up prices and creating a self-reinforcing effect.