[This article is provided by HOYA BIT Exchange]
Bitcoin's price rise has broken through $120,000! Both the U.S. dollar and Taiwanese dollar have reached historical highs.
Bitcoin has officially broken through $120,000, reaching another historical high! According to cryptocurrency data platform CoinMarketCap, Bitcoin peaked at $122,440 during the session, with a weekly increase of over 10%, and a cumulative surge of about 30% since the beginning of the year!
At the same time, this new high also obscures the negative impact of the Taiwanese dollar's appreciation. The exchange rate of the Taiwanese dollar against Bitcoin has also hit a new high, with the current price reaching NT$3,597,122 (as of 2 PM today), surpassing the new high record set at the beginning of this year.
In addition, while Bitcoin strengthens, the stock market shows contrasting trends. The S&P 500 fell 0.4%, and the Nasdaq Composite dropped 0.6%, while the Taiwan stock market closed down about 0.5% under the influence of weak electronic stocks. On the other hand, the safe-haven asset gold price rose against the trend, reaching $3,361 per ounce.
HOYA BIT founder Peng Yunxian pointed out that this recent surge in Bitcoin is due to the U.S. Congress launching Cryptocurrency Week, alongside three major driving forces including Trump’s pressure on Powell; however, unlike previous market conditions, this time the process of reaching new highs is extremely 'quiet', with low trading volume and liquidity. Most holders have not followed up with selling but instead chose to continue holding, reflecting a deepening investor recognition of Bitcoin's long-term value, no longer pursuing short-term profits but viewing it as an important part of long-term asset allocation.
Cryptocurrency Week has started! Market sentiment is warming up again.
One of the important factors driving Bitcoin to recent new highs is the 'Cryptocurrency Week' held by the U.S. Congress from July 14 to 18. This week, Congress will review three important bills, including stablecoin regulation, digital asset market regulations, and banning the Federal Reserve from issuing a digital dollar.
HOYA BIT founder Peng Yunxian analyzed that the launch of Cryptocurrency Week symbolizes that the U.S. has taken substantial steps toward regulating cryptocurrencies. In the future, cryptocurrencies are expected to become formal and legal payment tools, allowing Bitcoin to transition from a 'virtual asset' to an actual payment channel. This blending of virtual and real prospects stimulates investor sentiment, driving a significant increase in Bitcoin demand and price.
On the other hand, recent news of the Trump administration pressuring Federal Reserve Chair Jerome Powell to resign briefly stimulated market volatility. HOYA BIT founder Peng Yunxian analyzed that the main reason behind this move is Powell's continued resistance to interest rate cuts, while the Trump administration hopes to promote a shift toward a looser monetary policy by changing the Fed's leadership.
Although this news was later clarified as a rumor, it is a potential positive signal for investors. The market expects the possibility of interest rate cuts to rise in the future, further reinforcing Bitcoin's value as a safe-haven asset, boosting investors' confidence in holding long-term.
On-chain supply continues to decline, ‘supply not meeting demand’ pushes prices up.
The third major driving force behind Bitcoin breaking $120,000 comes from the structural imbalance of 'supply not meeting demand' revealed by on-chain data. According to the latest observations, the total supply of Bitcoin on major exchanges worldwide has dropped to a near seven-year low, indicating that most investors choose to transfer their Bitcoin into cold wallets or custodial institutions after purchase, intending to hold long-term rather than sell short-term.
More importantly, the supply-demand imbalance is no longer just an abstract expectation but a clear reality shown by data. Bitcoin's daily total output remains stable at 450 coins, however, the current market demand for Bitcoin exceeds 9,000 coins daily, over 20 times the daily new supply.
Such a structure means that even without new investors entering, as long as holders do not release their holdings, the market price naturally possesses stable upward pressure. HOYA BIT founder Peng Yunxian noted:
‘Bitcoin is no longer a tool for investors to speculate, but is seen as a store of value asset for the new era. As more and more assets are transferred into cold wallets, and the daily new supply far fails to meet market demand, price rises will be a natural result of supply and demand evolution, rather than an occasional phenomenon driven by emotions.’
With a market cap rising to fifth globally and altcoins yet to initiate, Bitcoin enters a ‘stable’ bullish mid-game.
Bitcoin's market capitalization has surpassed $2.4 trillion, officially surpassing Amazon, rising to fifth place in global asset market capitalization, and closing in rapidly on Apple.
HOYA BIT founder Peng Yunxian pointed out that this reflects that Bitcoin has transitioned from a speculative asset to a mainstream store of value tool under the reorganization of institutional capital. In the coming days, market focus should be on whether 'Cryptocurrency Week' will release more legislative progress and favorable policies, which will accelerate the legal clarity of the cryptocurrency industry and have far-reaching impacts on the medium- to long-term trend.
From a technical structure perspective, Bitcoin still has an URPD gap between $112,000 and $114,000 that has not been filled. If the price can effectively stabilize above the $120,000 threshold, accompanied by a rebound in trading volume, it may trigger the next phase of the bull market cycle, pushing the potential target to between $135,000 and $140,000; conversely, if it cannot stabilize, the price may briefly test the support zone of $114,000 to $115,000.
In addition, the market is also watching whether altcoins will initiate a rotation opportunity. HOYA BIT founder Peng Yunxian analyzed that Bitcoin's market share is currently about 63%, which has not yet fallen below the historically common watershed of 62% for altcoin seasons, indicating that funds are still concentrated in mainstream assets, with no large-scale fund reallocation occurring.
HOYA BIT founder Peng Yunxian reminds that the core of this market trend is supported by both institutional and supply-demand logic. Investors should seize medium- to long-term asset allocation opportunities from policy developments and on-chain structural observations.
'The price rises! Bitcoin soars past $120,000, HOYA BIT reveals three key factors for the surge.' This article was first published on 'Crypto City.'
