Bitcoin has surpassed $120,000 in July 2025, reaching a peak of $118,804.6, setting a new historical high. This breakthrough is mainly attributed to the following factors:
Reasons for the Breakthrough
1. Institutional Capital Influx: Since the approval of the US spot Bitcoin ETF at the beginning of 2024, institutional investors have been building positions through ETFs, pushing the coin price into a strong structure. As of July 2025, the total inflow of global Bitcoin ETFs has exceeded $50 billion, marking the large-scale entry of traditional financial capital into the cryptocurrency market through compliant and convenient channels.
2. Market Sentiment is Optimistic: With the continued rise in Bitcoin prices, market sentiment is generally optimistic, and investor confidence is increasing. This sentiment further drives the rise in Bitcoin prices.
3. Tension in Supply and Demand: The total supply of Bitcoin is limited, while market demand is increasing, leading to a gradually tightening supply-demand relationship that drives up prices.
Market Performance
1. Price Trends: After breaking the $120,000 mark, Bitcoin prices have fluctuated but remain high overall. As of July 14, 2025, the price of Bitcoin is approximately $122,203.83.
2. Market Share: With the rise in Bitcoin prices, its market share in the cryptocurrency market has also increased. As of July 2025, Bitcoin's market share has reached 62.5%.
3. Performance of Related Assets: The rise in Bitcoin prices has also driven up the prices of other cryptocurrencies. For example, Ethereum broke the $3,000 mark after Bitcoin surpassed $120,000.
Future Outlook
1. Price Predictions: Several analysts and institutions hold an optimistic view on Bitcoin's future price. For example, the head of digital asset research at Standard Chartered Bank predicts that Bitcoin prices may surpass $135,000 in the third quarter, and could even rise to $200,000 by the end of 2025.
2. Market Risks: Despite the continuous rise in Bitcoin prices, there are still significant risks in the cryptocurrency market. Factors such as policy changes, fluctuations in market sentiment, and technical security may all impact Bitcoin prices.
