Bitcoin has surged to $116,000 once again, driven by institutional capital inflows and economic disruptions. Cryptocurrencies are entering a new bullish cycle. What lies ahead for this market ?
On July 10, Bitcoin reached a new all-time high of $117,000, just six days after Donald Trump signed the “Big Beautiful Bill.” This $3.3 billion measure immediately led to a $410 billion increase in US debt, fueling inflation fears.
Faced with this uncertainty, investors have flocked to tangible assets like Bitcoin, whose limited supply makes it a safe haven against dollar depreciation. BlackRock’s Bitcoin ETF has seen its assets under management triple in just 200 trading days, a record pace.
Meanwhile, the US Federal Reserve reduced its balance sheet by $13 billion in June, bringing it down to $6.66 trillion. This is the lowest level since April 2020. In three years, the Fed has decreased its holdings by more than $2.3 trillion, draining market liquidity.
In this context of scarce liquidity, Bitcoin and other cryptocurrencies are becoming a safe haven favored by investors. Ethereum has gained 14% since the Big Bill was passed, while altcoins like Solana or Avalanche are also following the bullish trend.
Furthermore, Ethereum purchases have surpassed those of Bitcoin on BlackRock’s platform, fueling speculation about an imminent explosion in altcoin prices.
In conclusion, Bitcoin’s new all-time high is not coincidental but reflects major structural changes. Currently at $117,800, Bitcoin could climb to $120-122,000 today before potentially experiencing a final retracement to $113,800.
Indeed, Bitcoin surged more than $3,000 in a single 5-minute candle, leaving a liquidity gap that could be filled if large holders take profits in the coming days.
But US debt is soaring, fueling inflation fears, while the Fed tightens its monetary policy. In this context, Bitcoin has established itself as the primary macroeconomic hedge for investors and could continue its rise toward $150,000 in the coming months.
As the crypto market enters a new bullish cycle, all eyes are now on the Federal Reserve’s upcoming interest rate decisions.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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