On July 10, 2025, Bitcoin hit a new ATH, soaring past $111,699, breaking free from its recent range of $105,000–$109,000. Several key factors converged to fuel this remarkable surge, reflecting both market dynamics and broader economic shifts.
Key Drivers Behind Bitcoin Hit a New ATH
- Institutional Inflows into Bitcoin ETFs
- Spot Bitcoin ETFs in the U.S. have seen record-breaking inflows, with billions of dollars pouring in from institutional investors.
- These funds, managed by major financial players, have significantly boosted demand, pushing Bitcoin’s price to new heights.
- Supportive U.S. Policy Shifts
- Recent political developments, including proposals for a strategic Bitcoin reserve and a more crypto-friendly regulatory environment, have bolstered market confidence.
- These policy signals have encouraged both retail and institutional investors to view Bitcoin as a legitimate asset class.
- Supply Constraints Post-Halving
- The April 2024 Bitcoin halving reduced the rate of new coin issuance, tightening supply.
- With miners holding onto 1.8 million coins and long-term holders accumulating, the scarcity effect has amplified Bitcoin’s price momentum.
- Favorable Macro Conditions
- A recent U.S.-Vietnam trade agreement and expectations of a Federal Reserve rate cut in September 2025 have improved risk appetite.
- The U.S. money supply (M2) growth of 4.5% year-over-year has also driven capital into high-risk assets like Bitcoin.
- Technical Breakout
- Bitcoin broke through the $109,000 resistance level, supported by bullish technical indicators.
- Analysts note that the Relative Strength Index (RSI) at 59 signals sustained upward momentum without entering overbought territory.
Despite this milestone, risks remain. Profit-taking could trigger a correction, with support levels around $105,333 or lower at $92,000. Rising mining costs, up 34% due to higher energy prices and hashrate, may also pressure miners to sell, potentially impacting short-term price stability. However, the long-term outlook remains bullish, with forecasts suggesting Bitcoin could reach $135,000–$150,000 by year-end.
Bitcoin hit a new ATH that underscores its growing prominence. For the latest insights and market updates, follow the MevX blog to stay informed and navigate the dynamic world of cryptocurrency with confidence.
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