Bitcoin surges to above $118,000, where to next?
Bitcoin surges to fresh record high amid institutional demand, as US equities slip on US President Trump’s new tariffs.
Bitcoin breaks new ground at $118,000+
Bitcoin has once again shattered expectations, soaring to a new all-time high just above $118,400.00, cementing its position as a growing force in global financial markets. The rally comes as US equities retreat, highlighting Bitcoin's evolving role in investor portfolios during a shifting macroeconomic and policy landscape.
As stocks continue to react nervously to every new US tariff headline, Bitcoin remains unfazed. It is steadily evolving into exactly what its advocates have long envisioned - an asset detached from political turbulence.
Unlike traditional assets, Bitcoin isn’t burdened by supply chain vulnerabilities or corporate balance sheets. Instead, its price is driven by capital flows and investor conviction.
The current rally has been powered by a wave of institutional investment and a markedly more favourable regulatory landscape, all of which have been amplified by President Trump’s recent flurry of tariff announcements.
Whether Bitcoin can withstand a broader equity market selloff if tariffs are fully enacted is still uncertain. But for now, it stands firm as a safe-haven asset, significantly outperforming gold in recent days.
Institutional momentum accelerates
The ongoing bull run is underpinned by intensified institutional participation. Over the past week alone, US-listed spot Bitcoin exchange-traded funds (ETFs) drew more than $1.5 billion in net inflows, demonstrating growing investor confidence and signalling a structural shift in the asset’s market profile.
Institutional accumulation extends beyond ETFs. Japanese investment firm Metaplanet recently added another 1,234 BTC, bringing its total holdings to 12,345 BTC. This signals long-term conviction and showcases how Bitcoin is becoming an increasingly common feature in corporate treasuries.
Macro tailwinds continue to favour Bitcoin
Falling US Treasury yields and expectations of rate cuts by the Federal Reserve (Fed) have lifted risk sentiment, benefitting cryptocurrencies despite a downturn in equity markets. In particular, the weakening US dollar has driven capital into assets viewed as hedges against inflation and fiat devaluation, with Bitcoin emerging as a clear beneficiary.
Additionally, Bitcoin’s correlation with traditional risk assets appears to be weakening, allowing it to outperform equities in recent sessions. As a result, many institutional investors now see Bitcoin not just as a speculative bet but as a legitimate portfolio diversifier.
Regulatory developments add legitimacy
Bitcoin’s ascent is also being driven by regulatory progress. In March 2025, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve, placing it alongside gold as a national reserve asset. This milestone marks a significant legitimisation of digital assets at the highest level of US government policy.
Further mainstream integration has come from housing policy. The Federal Housing Finance Agency now recognises cryptocurrencies as qualifying assets for mortgage underwriting by agencies such as Fannie Mae and Freddie Mac, removing yet another barrier to crypto adoption.
Volatility persists amid uptrend
Despite the bullish outlook, Bitcoin’s rally has been punctuated by moments of heightened volatility. Recent data shows $340 million in short positions were liquidated across major exchanges, reminding investors that large price swings remain a key feature of the asset class.
While some analysts project that Bitcoin could climb to $200,000.00 over the next year, led by institutional inflows and supportive regulation, they also warn that regulatory curveballs or broader market risk aversion could trigger corrections.
Broader crypto market reacts
Bitcoin's surge has reinvigorated the wider digital asset ecosystem. Alternative cryptocurrencies, or altcoins, have posted impressive gains, albeit lagging behind Bitcoin. Interest in blockchain infrastructure and crypto-native firms has resurged, with capital flowing into both public and private ventures.
Traditional financial institutions, once cautious, are rapidly expanding their crypto offerings to meet client demand. The total market cap of the cryptocurrency sector has hit new highs, reflecting growing retail and institutional participation alike.
Technical picture points to further upside
Bitcoin’s breakout above its May peak of $111,965.80 to a new high of $118,404.42 on 11 July confirms the strength of the uptrend. If momentum continues, the next technical upside target lies at the 161.8% Fibonacci extension of the 2019–2021 rally, projected from the 2022 low, currently at $122,056.92. Around it the current strong upside momentum may falter.
Bitcoin daily candlestick chart
If not, another 161.8% Fibonacci extension may be found at $143,519.00.
Because of inverse polarity the May peak at $111,965.80 may now act as support, together with the early June high at $110,617.03 and the early July high at $110,598.55.
Another potential support level is the 7 July high at $109,745.66. Below it sit the 4-to-8 July lows at $107,509.83-to-$107,335.44 low which represent another technical support area.
Despite signs of overbought conditions on the daily timeframe – to levels last seen in May before Bitcoin consolidated - chart patterns remain firmly bullish for now. Robust trading volume accompanying the latest breakout suggests that recent gains are underpinned by genuine accumulation rather than speculative froth.
Investor guidance: navigating the Bitcoin landscape
New and seasoned investors alike should assess their risk tolerance before entering the cryptocurrency market. Starting with small allocations and employing disciplined risk management - such as stop-loss orders and portfolio diversification - can help navigate crypto’s volatility.
Those opting for direct Bitcoin exposure should prioritise secure storage solutions and familiarise themselves with wallet management.
Investors must also be aware that cryptocurrencies are unregulated, meaning no consumer protections exist against capital loss.
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