This week, Bitcoin maintains a strong position above $94,000 after a 26% rebound, driven by increasing demand from institutional investors and a rise in money supply. Analysts predict a potential surge towards an all-time high of $120,000, but sustained upward momentum is questioned as macro risks gradually ease.
Bitcoin’s price has been quite stable lately, remaining firmly above the $94,000 resistance point this week. After an impressive 26% rebound from its lows earlier this month, it’s currently sitting at its highest value since late February. However, the recent rally appears to have lost some momentum.
There’s a noticeable uptick in Bitcoin demand this year. Last week, an alliance was formed among Cantor Fitzgerald, Tether, and Softbank with plans to accumulate Bitcoin over the next few months. This trend is echoed across companies like Strategy, Semler Scientific, and MetaPlanet, all of which are increasing their Bitcoin holdings.
Wall Street is also getting in on the action. Recent data from SoSoValue indicates that spot Bitcoin ETFs gained over $379 million just last Friday, marking a promising trend with assets increasing for six straight days and total weekly gains exceeding $3 billion— a significant rise from the previous week’s $15 million.
Across the board, spot Bitcoin ETFs have been reporting asset growth lately. The iShares Bitcoin ETF (IBIT) is leading with an impressive $56 billion in assets. Meanwhile, Fidelity’s FBTC, Grayscale’s BTC, and Ark’s ARKB each hold over $5 billion.
Bitcoin’s price surge coincides with rising demand for safe-haven assets, particularly amid recent turbulence involving trade tariffs and concerns regarding Federal Reserve Chair Jerome Powell potentially being dismissed. During this period, Bitcoin has outperformed traditional equities.
On a macroeconomic scale, the global M2 money supply is also experiencing significant growth, with the US at over $21 trillion and China at more than $42 trillion. Historical data suggests that increases in the money supply often correlate with rising Bitcoin prices.
Meanwhile, bullish sentiment among crypto analysts on X is strong. Reed Carson, a well-known figure with nearly 20,000 followers, recently predicted Bitcoin could hit $120,000 by the end of July, stirring further excitement in the market.
Looking at Bitcoin’s price from a technical perspective, this month’s weekly chart indicates a bottoming out at $74,660. Following this, Bitcoin price surged to $94,000, having formed a morning star candlestick pattern three weeks ago. The coin’s rise has exceeded the 50-week Exponential Moving Average (EMA), suggesting that bullish control is solid.
Furthermore, the Stochastic Oscillator indicates continued upward momentum, now crossing the neutral line. Hence, there’s potential for Bitcoin to approach an all-time high of $109,300, about a 15% increase from current levels. However, despite this optimistic outlook, the consensus is that a record high might not materialise just this week as broader macroeconomic concerns begin to settle down.
