Yesterday, Bitcoin once again made history, reaching an astonishing $118,000 per coin. This event became a real milestone for the crypto market and forced many investors, analysts, and skeptics to reassess their forecasts. Let's analyze what is behind this dizzying growth.
🔑 1. Massive institutional influx of liquidity
In recent months, large funds, banks, and hedge companies have continued to increase their Bitcoin holdings. According to Glassnode, over 120,000 BTC was purchased by institutional investors through spot ETFs and OTC deals in June-July. This influx of capital significantly reduced supply in the market.
> Fact: Bitcoin ETFs in the US and Europe have shown record volumes since their inception.
🟢 2. Rise of optimism after halving
The April halving (halving the reward for miners) traditionally initiates multi-year growth cycles. Investors anticipated an increase in the shortage of coins in circulation, but the speed of hash rate recovery and demand from spot buyers turned out to be even higher than expected.
> Historically, after each halving, Bitcoin has shown growth from +300% to +1200% over 12–18 months.
💰 3. Weakening dollar and monetary policy
The US Federal Reserve signaled a rate cut to support the economy amid a slowdown. This increased interest in safe-haven assets and triggered a capital outflow from the dollar into gold and cryptocurrencies. Bitcoin once again confirmed its status as "digital gold."
🌍 4. Geopolitical instability
The rise of geopolitical risks and regional conflicts has pushed investors towards asset diversification. Bitcoin has become a hedging tool, especially in countries with high inflation and currency controls.
📈 5. Positive expectations for infrastructure development
Major payment platforms, including PayPal and Stripe, have expanded BTC integration. New scaling solutions (such as Lightning Network and Layer-2) have improved user experience and made Bitcoin payments faster and cheaper.
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📊 What does this mean for investors?
Short-term: high volatility and profit-taking by major players may trigger pullbacks.
Mid-term: an upward trend persists with possible tests of the $100,000 and $130,000 levels.
Long-term: fundamental factors of supply shortage and institutional demand continue to strengthen.
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> Important
Cryptocurrencies remain high-risk assets. Conduct your own analysis and consider potential price fluctuations before investing.
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