Bitcoin ($BTC ) has shown strong price performance recently, breaking the $112,000 barrier for the first time in the early hours of July 10, setting a new historical high. Below is a detailed analysis:

• Price Trend: After first breaking $110,000 on May 22, Bitcoin entered a consolidation phase, during which it multiple times dipped to around $98,000. Since July, its price has been gradually rising along the trend middle track, with momentum indicators gradually recovering. From a technical perspective, March to May of this year was a phase of oscillation and bottoming out to a breakout platform, mid-May to early June was a rapid rise period, and mid-June to early July was characterized by high-level consolidation to a new high.

• Reasons for the Rise: First, continuous buying from institutions and a recovery in market risk appetite have endowed Bitcoin with dual attributes akin to gold or tech growth stocks, with listed companies and asset management institutions becoming major buyers. Second, the rise in the U.S. tech sector has transmitted sentiment and liquidity, with stocks like Nvidia breaking through, leading investors to view digital assets as benefiting from the trend of value digitization; the asset linkage effect between Bitcoin and tech stocks has amplified its price elasticity. Third, the U.S. Federal Reserve's monetary policy has entered an expected easing phase, with the market anticipating increased liquidity, while the GENIUS Act promoted by the U.S. is bringing a clearer regulatory framework to the cryptocurrency market, enhancing market confidence.

• Market Outlook: Future trends depend on key variables. If U.S. policies favor digital assets and institutional funds continue to flow in, Bitcoin's price may form a new rising rhythm. However, if spot trading volumes cannot be maintained, or if there is large-scale forced liquidation in the futures market leading to liquidity tightening, there may be short-term corrections or even larger price declines. Overall, as market expectations for a Federal Reserve rate cut continue to ferment, along with ongoing accumulation by institutions and long-term holders, Bitcoin remains in a bullish pattern in the short term, but long-term risks such as policy changes and market bubbles need to be monitored.

• Risk Warning: The Bitcoin market carries significant risks. On one hand, its decentralization and anonymity characteristics may lead to money laundering, illegal fundraising, and other criminal activities, prompting regulatory agencies in various countries to strengthen oversight. Once stricter policies are implemented, they will significantly impact Bitcoin's price and market liquidity. On the other hand, Bitcoin's price is highly volatile, with bubble risks.