On Monday (July 14), Bitcoin opened strong in Asian trading, maintaining above $119,000 and soaring to a historic high, just touching the $120,000 mark, primarily driven by a significant increase in institutional investor demand. Additionally, the highly anticipated 'Cryptocurrency Week' in Washington is set to begin later that day.
Bitcoin surged to a record high of over $119,000 on July 13, continuing its impressive upward momentum, primarily driven by increased institutional investment, declining reserves at major exchanges, and strong technical breakout signals. By July 14, this momentum further accelerated, with Bitcoin's price rising to $120,000 each.
This price surge is partly driven by speculation about large corporations making substantial Bitcoin acquisitions. According to data compiled by CoinMarketCap, corporate purchases of Bitcoin exceeded $554 million this week, although specific details have not been disclosed. These developments echo previous aggressive acquisition phases, such as MicroStrategy's purchases, where rumors about institutional buying often signal rapid price increases.
Meanwhile, demand in the traditional financial sector continues to grow, with total inflows into Bitcoin spot exchange-traded funds (ETFs) amounting to $1.18 billion over the past week. Even amidst increased global macroeconomic uncertainty, many investors still view Bitcoin as a safe-haven asset and a high-yield store of value in a changing economic environment.
In terms of regional ETF performance, the U.S. market has continued to perform steadily, rising 2.9% over the past month. Notably, the Vietnam ETF (VNM) and the Israel ETF (EIS) led the way with returns of 14.26% and 11.98%, respectively.
'Cryptocurrency Week' is approaching
Moreover, investor sentiment is driven by expectations, anticipating that the U.S. House of Representatives will discuss several landmark cryptocurrency bills during 'Cryptocurrency Week': the (CLARITY Act), which will define regulatory oversight of the cryptocurrency market; the (GENIUS Act), which creates a framework for stablecoins and has passed the Senate; and the (Anti-Central Bank Digital Currency Surveillance Nation Act), which will prohibit the creation of a U.S. central bank digital currency. If these bills pass, they could establish a comprehensive regulatory framework covering stablecoins, crypto asset custody, and the broader digital financial ecosystem.
Mason Lynaugh, community director of the nonprofit advocacy group Stand With Crypto supported by Coinbase, emphasized that the cryptocurrency industry sees this moment as urgent and potentially decisive.
This increase is also attributed to a strategic meeting held last week by a key regulatory agency in China, informing local officials about stablecoin and digital currency policies. The meeting organized by Shanghai's state-owned assets regulatory department last Thursday marks a shift in China's policy, although cryptocurrency trading remains banned in China.
Outlook for Bitcoin's future market
Bitwise's Chief Investment Officer Matt Hougan predicts that the upward momentum is expected to continue, leading to a significant increase in Bitcoin's value. Currently, Bitcoin production cannot meet the growing demand from investors, which may further drive up its price. This surge in demand is not limited to individual investors but includes an increasing number of institutional investors who view Bitcoin as a valuable asset.
Hougan emphasized that the Bitcoin network produces only 450 new Bitcoins each day through mining activities. Recently, strong demand from investors for exchange-traded funds (ETFs) led to the purchase of 10,000 Bitcoins in a single day. This situation suggests that prices may rise further. Hougan noted that the shift of institutional investors towards crypto assets is not a one-time event, indicating that this trend may continue for years. The imbalance between demand and supply in the market could drive the price of Bitcoin to new historical highs.
Hougan stated, 'We are witnessing a tug-of-war between strong institutional demand and extremely limited supply. The Bitcoin network only creates 450 Bitcoins each day, but just through ETFs, 10,000 Bitcoins were purchased yesterday. This wave of institutional investment will continue for years. During this time, a lasting balance where demand exceeds supply will form, naturally pushing Bitcoin prices up.'
The wealth protection function offered by Bitcoin plays an important role in attracting investor interest. Hougan emphasized that economic and geopolitical uncertainty often drives investors towards crypto assets. The potential new uses and opportunities presented by Bitcoin as a crypto asset are becoming a key factor for investors seeking alternatives to traditional financial systems. Analysts believe that the demand for digital wealth protection during uncertain times is driving increased demand.
Hougan further explained, 'Bitcoin provides a service: allowing wealth to be stored digitally without reliance on banks. This is not just an emotional issue. Like stocks and bonds, investor sentiment can play a role, but the main driver of price increases is the continuously growing demand for this service. Today, due to tariffs and geopolitical tensions, people want to protect their wealth digitally.'
The general consensus is that if institutional demand continues, Bitcoin could see significant growth by the end of the year. According to Bitwise's predictions, if the current imbalance between demand and supply persists, Bitcoin's price could approach $200,000 by the year's end.
On another note, last week, Emirates Airlines announced a partnership with Crypto.com to explore solutions for using cryptocurrency payments in Dubai's tourism ecosystem. This initiative includes a memorandum of understanding (MOU) signed between Dubai Duty-Free and a global cryptocurrency exchange, which will enable digital asset payments in both physical retail and online platforms.
The agreement targets millions of international travelers passing through Dubai International Airport, aiming to position Dubai as a pioneer in accepting cryptocurrency for travel retail, which aligns with Dubai's economic agenda D33 to become a global innovation center and leader in the smart economy.
