As Asia begins a new trading day on Friday (July 18), Bitcoin's trading price has surpassed $120,500, rising 1.7% in the past 24 hours, while Ethereum continues to rise 3%, aiming to test $3,500.
According to the Financial Times, 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 early as this week, allowing 401(k) accounts to invest in a wider range of assets beyond traditional stocks and bonds, such as digital assets, gold, and private equity, and instructing regulatory agencies to clear relevant obstacles.
Driven by this news, Bitcoin broke through $120,000, rising 1.7% in the past 24 hours. Meanwhile, XRP reached an all-time high, surpassing the record set in 2018.
Ethereum (ETH) rose 3.12% to $3,477.70, finding strong support at $3,315 during volatile trading. Driven by the GENIUS Act, funds are flowing from BTC to ETH, while assets like XRP are also experiencing gains.
House passes the GENIUS Act
Earlier this week, the world's largest cryptocurrency broke through $123,000, primarily fueled by market expectations of supportive crypto policies from Washington. Despite the rising popularity of digital assets, analysts believe there is still significant room for growth in institutional investment demand, as long-term investors like pensions incorporate Bitcoin into their portfolios.
On Thursday, the U.S. House of Representatives voted to pass legislation providing a regulatory framework for dollar-pegged stablecoins. President Trump is expected to sign the bill on Friday. Additionally, the House also passed two other important cryptocurrency-related bills, which are now under consideration by the Senate.
"Institutional ownership is still in its early stages," says Adrian Fritz, research director at digital asset investment firm 21Shares, noting that the crypto market is still dominated by retail investors.
Fritz estimated that in the assets of the Bitcoin spot ETF, the proportion held by long-term investors (such as pensions and endowment funds) is less than 5%, with about 10%-15% held by hedge funds or wealth management firms.
However, he noted that wealth management firms typically represent high-net-worth individual clients in purchasing these ETFs, so most ETF holders are still retail investors. Financial research firm Vanda's estimates show that significant buying of crypto ETFs and related stocks by retail investors is closely linked to price increases. Data shows that following Trump's election at the end of 2024, where he promised to be the 'crypto president', and in the recent rally, retail investors have been actively buying.
A series of bills that U.S. lawmakers are set to pass this week (most notably the GENIUS Act, which will set market rules for stablecoins) will also boost the crypto market. The House passed legislation on Thursday that establishes the first federal regulatory framework for digital assets.
Several large U.S. banks (including Bank of America and Citigroup) are also preparing to launch their own stablecoins.
Another bill formally defines digital goods and clarifies the responsibilities of regulatory agencies, clearing obstacles for institutional investors who have long avoided this space.
Simon Forster, global co-head of digital assets at TP ICAP, predicts that by 2026, more institutions, including pensions, will participate in crypto investments. Fritz added, "By definition, they will be among the slowest to enter the crypto market."
Bitcoin Technical Analysis
Currently, Bitcoin's price is slightly consolidating around $120,390, but a positive sign is that the bulls have not given up too much ground, indicating that they are still holding their positions, expecting the upward trend to continue.
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 poured over $5.2 billion into these ETFs.
So, can the upward trend of Bitcoin continue? Let's take a look at the 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 firmly defending around $120,000.
If there are multiple failures to break through $120,000, it could 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, potentially leading to a further drop 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 upward movement, targeting $135,729 and a pattern target of $150,000.
