The recent breakout of Bitcoin to a new historical high indeed has solid market fundamentals supporting it. According to the latest data, the BTC price has stabilized above $110,000, with several key factors worth noting behind this:

First is the continuous inflow of institutional funds. The U.S. Bitcoin ETF has recently maintained a net inflow for 18 consecutive days, accumulating $14.4 billion, with BlackRock's Bitcoin holdings exceeding 260,000 coins. The ongoing purchases by these giants have directly pushed up market prices.

From on-chain data, the Bitcoin stock on exchanges has dropped to its lowest level since 2018, with only about 2.4 million coins left. More notably, over 75% of Bitcoins are held by long-term holders who show no intention of selling, leading to very tight market liquidity.

Data from the derivatives market is also quite telling. In the past 24 hours, $209 million in short positions were forcibly liquidated, and the total amount of open contracts surged by 47% compared to last month, indicating that market participation is rapidly heating up.

Changes in the macro environment are particularly favorable for Bitcoin. Currently, the market expects the probability of the Federal Reserve cutting interest rates in July to have risen to 78%, and the U.S. dollar index has fallen by 1.2% in the past week. This loose monetary environment has always been the best catalyst for Bitcoin's rise.

However, vigilance is also necessary. The upcoming U.S. CPI data may bring volatility, and there are reports that the German government's wallet recently transferred $190 million worth of Bitcoin to exchanges, which could become a trigger for short-term corrections.