As Asia opened a new trading day on Friday (July 18), the trading price of Bitcoin has surpassed $120,500, rising 1.7% in the past 24 hours, while Ethereum continues to rise by 3%, with hopes of testing $3,500.
According to a Thursday report from the Financial Times, U.S. President Donald Trump is preparing to sign an executive order allowing retirement accounts to invest in alternative assets, including cryptocurrencies.
The order could be signed as soon as this week, allowing 401(k) accounts to invest in a broader range of assets beyond traditional stocks and bonds, such as digital assets, gold, and private equity, and instructing regulatory agencies to clear related obstacles. Following this news, Bitcoin broke through $120,000, rising 1.7% in the past 24 hours. Meanwhile, XRP reached an all-time high, breaking the 2018 record.
Ethereum (ETH) rose 3.12% to $3,477.70, finding strong support at $3,315 during volatile trading. Driven by the GENIUS bill, funds flowed from BTC to ETH, while assets like XRP also saw increases.
The House passed the GENIUS bill.
Earlier this week, the world's largest cryptocurrency broke through $123,000, primarily driven by market expectations of supportive crypto policies from Washington. Despite the rising interest in digital assets, analysts believe there is still significant room for growth in institutional investment demand as long-term investors like pension funds incorporate Bitcoin into their portfolios.
On Thursday, the U.S. House voted to pass legislation for a regulatory framework for dollar-pegged stablecoins. President Trump is expected to sign the bill on Friday. In addition, the House also passed two other significant cryptocurrency-related bills, which are now under review in the Senate.
"Institutional holdings are still in the early stages," said Adrian Fritz, head of research at digital asset investment firm 21Shares, noting that the crypto market is still dominated by retail investors.
Fritz estimates that among the assets of spot Bitcoin ETFs, the proportion held by long-term investors (such as pension funds and endowment funds) is less than 5%, with about 10%-15% held by hedge funds or wealth management companies.
However, he noted that wealth management firms typically purchase these ETFs on behalf of high-net-worth retail clients, so most ETF holders are still retail investors. Estimates from financial research firm Vanda show that retail investors' significant purchases of crypto ETFs and related stocks are closely related to price increases. Data shows that after Trump's election in late 2024, promising to be the 'crypto president', and during the recent price surge, retail investors were actively buying.
A series of bills that U.S. lawmakers are expected to pass this week (the most important being the GENIUS bill, which will set rules for the stablecoin market) will also support the crypto market. The House passed legislation on Thursday to establish the first federal regulatory framework for digital assets.
Some large U.S. banks (including Bank of America and Citigroup) are also preparing to launch their own stablecoins.
Another bill formally defines digital goods, clarifies the responsibilities of regulatory agencies, and clears obstacles for institutional investors who have long avoided this field.
TP ICAP's global co-head of digital assets, Simon Forster, predicts that by 2026, more institutions, including pension funds, will participate in crypto investments. Fritz adds, "By definition, they will be among the slowest to enter the crypto market."
Bitcoin Technical Analysis
Currently, the Bitcoin price is slightly consolidating around $120,390, but a positive sign is that bulls have not given up too much ground, indicating they are still holding their positions in anticipation of a continued upward trend.
According to data from Farside Investors, the U.S. Bitcoin spot ETF recorded a net inflow of $799.4 million on Wednesday, marking the 10th consecutive trading day of inflows. Since July 2, investors have put more than $5.2 billion into these ETFs.
So, can the upward trend of Bitcoin continue? Let's take a look at key target and support levels:
On Wednesday, bulls attempted to push prices higher, but the long upper shadow on the candlestick indicates that bears are defending strongly around $120,000.
If the price fails to break through $120,000 multiple times, it may trigger a deeper correction, targeting the 20-day exponential moving average (EMA) around $113,528. If bears push the price below $110,530, they may regain control, and the price could further dip to $105,000.
If the price stabilizes and rebounds near the 20-day EMA, bulls will again attempt to break through the resistance zone of $120,000 - $123,218. If successful, Bitcoin may initiate a new round of increases, targeting $135,729 and a pattern target of $150,000.
