Bitcoin hits record high, sparks new bull market hopes

Bitcoin ($BTC) has broken past a huge milestone, briefly hitting an all-time high of $112,055 on 9 July. This record did not just excite Bitcoin investors – it pushed the entire cryptocurrency market higher, lifted risky assets, and got analysts talking about even bigger gains.

With altcoins gaining ground, institutional investors pouring in billions, and traders rushing back into the market, the next few months could bring more surprises.

For weeks, Bitcoin hovered near $110,000, stuck in a battle between profit-takers and short-sellers. But on 9 July, it finally broke out, surging past $112,000 to reach its highest price ever. 

In just one hour, over $280 million in short positions were wiped out, triggering a short squeeze that sent the price soaring.

At the time of writing, Bitcoin is trading just under its record, at around $111,000, up nearly 2% on the day. With Bitcoin making up about 65% of the total $3.4 trillion crypto market, every move it makes impacts the entire digital asset space.

Institutional investors are now at the centre of this rally. US spot Bitcoin exchange-traded funds (ETFs) saw more than $1 billion in inflows this month alone, showing Wall Street’s growing interest. 

Analysts say the rally is fuelled by several factors: more liquidity in markets, rising global tensions, and expectations that interest rates will be cut soon. Even giants like BlackRock are now holding large amounts of Bitcoin, confirming its place in the mainstream financial world.

Technical analysts are also watching the charts closely. One leading analyst pointed to a “bullish cup-and-handle” pattern that could push Bitcoin towards $150,000 by the end of the year. 

Meanwhile, the Crypto Fear & Greed Index has jumped to 71, landing in the “Greed” zone, which shows rising investor confidence.

On a technical level, Bitcoin has broken its downward trend and is showing a series of higher highs on daily charts. 

Liquidity maps show pressure points around $114,000 and $115,000, but if Bitcoin breaks through these levels, another wave of short-covering could push prices even higher. 

At the same time, fewer Bitcoins are sitting on exchanges as long-term holders move them to cold storage, reducing supply and possibly driving up prices.

Altcoins gain momentum as Bitcoin dominance slips

While Bitcoin is still in the spotlight, altcoins – all other cryptocurrencies apart from Bitcoin – are starting to make headlines too. Data from TradingView shows that the total market cap of altcoins has risen nearly 10% since the start of July, recently passing $1.2 trillion. 

Bitcoin’s market dominance, on the other hand, has dropped from 66% to 64.5%, its biggest fall since May. This signals that altcoins are growing faster than Bitcoin, giving their investors fresh hope.

Crypto analyst, Master of Crypto, explained that Bitcoin doesn’t need to crash for altcoins to rise. Instead, if Bitcoin’s price moves sideways while its dominance keeps falling, it could set the stage for altcoins – especially smaller and mid-sized tokens – to surge. 

“If BTC.D falls below the 50-day EMA, we might see a mini alt season. If it breaks the 200-day EMA, get ready for a major alt season – ETH, SOL, memes go wild”, Master of Crypto predicted.

Another reason for this optimism is the large amount of stablecoins – such as $USDT and $USDC – sitting on exchanges. CryptoQuant analyst, oinonen_t, pointed out that Binance alone holds over $31 billion worth of these coins. At the same time, Bitcoin reserves on exchanges are shrinking. 

Oinonen_t further explained, “During a bull cycle, Bitcoin is usually withdrawn from exchanges and held in private cold wallets. Meanwhile, rising stablecoin reserves reflect sidelined capital, or unused ‘dry powder’, ready to deploy”.

Still, some investors remain cautious. Past predictions of an altcoin season have often failed to materialise, leaving many sceptical. A recent report also showed that retail investors are increasingly doubtful. 

Yet, well-known analyst, Michaël van de Poppe, says this is a normal part of a bull market. According to him, scepticism often comes just before the market picks up speed.

Institutional inflows, retail caution, and what comes next

The recent Bitcoin rally has forced many traders to rethink their positions. Analysts at 10x Research believe that Bitcoin’s breakout could continue into the third quarter, with a price target as high as $133,000. 

The head of research at 10x Research, Markus Thielen, said the firm’s trend model turned bullish on 29 June and now gives a 60% chance that Bitcoin will keep rising over the next two months. 

“Bitcoin is breaking out, fuelled by relentless ETF demand and a series of policy catalysts on the horizon”, Thielen said.

Thielen also noted that many traders are underexposed after last month’s options expiry and are now rushing to catch up. The US Consumer Price Index (CPI) report, due on 15 July, could push more buyers into the market if inflation numbers come in lower than expected. 

Historically, Bitcoin has returned an average of just 5.84% in the third quarter since 2013, but Thielen believes this year could be different, thanks to positive policy changes and strong ETF flows. “Traders on the sidelines risk missing the move that could define this quarter”, he warned.

Ethereum has also been on the rise, jumping over 5% and outperforming coins like Ripple and Solana ($SOL). BlackRock’s spot ether ETF, ETHA, saw record trading activity, with over 43 million shares changing hands on Wednesday – nearly twice the previous day’s volume. 

Investor interest has pushed $1.2 billion into the fund since June, with $159 million flowing in on Tuesday alone.

Analyst, Matthew (@OneBasedMoney), believes Bitcoin’s price movement follows a power law model, doubling roughly every 12.7% of its lifespan. Based on this, Matthew thinks Bitcoin could hit between $250,000 and $350,000 by late 2025 or early 2026. 

He says Bitcoin’s value now comes mainly from adoption within the crypto space itself, rather than from global macro events, showing a maturing market.

Institutional interest in Bitcoin continues to grow. Just 18 months after launching in January 2024, US spot Bitcoin ETFs have seen over $50 billion in net inflows. On 9 July alone, they pulled in $218 million, capping a five-day streak that brought in nearly $1.52 billion. 

BlackRock’s iShares Bitcoin Trust (IBIT) leads the pack, holding over 700,000 BTC, or more than 55% of all Bitcoin in US spot ETFs. According to Nate Geraci of NovaDius Wealth Management, IBIT has even become BlackRock’s third-largest ETF by revenue.

Bloomberg analysts estimate a 95% chance that the US Securities and Exchange Commission (SEC) will approve spot ETFs for Solana, XRP ($XRP), and Litecoin ($LTC)this year. Ethereum ETFs are also seeing strong momentum, with daily inflows topping $211 million and total inflows approaching $5 billion.

Analyst at BTC Markets, Rachael Lucas, said this surge is not driven by retail hype. “This is not your typical retail hype cycle. It’s large-scale investors, asset managers, corporate treasuries, and wealth platforms moving in”, she explained. 

Lucas added that global tensions and President Donald Trump’s push for rate cuts are making Bitcoin even more attractive. ETFs also make it easier and safer to invest, offering a familiar route for institutions.

Yet, not all reports can be taken at face value. Claims that companies added 159,107 BTC – worth nearly $17.7 billion – to their balance sheets in Q2 2025 remain unverified. 

No official statements from firms like Strategy or Tesla confirm these numbers, and on-chain data shows no such changes. Without concrete evidence, the market is waiting cautiously.

Retail traders have had a tough time in this rally. Data from Coinglass shows that over 114,500 traders were liquidated in the past 24 hours, with total losses of $515 million. 

The biggest single liquidation happened on HTX, where a BTC-USDT position worth $51.56 million was wiped out. Santiment analysts noted that small wallet holders are selling to whales, a pattern that has often come before sharp price rises.

Michael Van de Poppe summed it up: “At the start of the bull, 99% of people will remain bearish. The coming month, you’ll continue to hear that the upwards run is fake on altcoins. That’s this part of the cycle”. 

The Crypto Fear & Greed Index is edging towards greed but hasn’t hit extreme levels yet. If altcoins start gaining ground, experts believe it could trigger the next major phase of the bull market.

For now, Bitcoin’s record-breaking rally, combined with institutional flows and retail caution, is setting the stage for what could be an exciting and unpredictable period ahead. 

Whether watching closely or sitting on the sidelines, investors across the world are waiting to see what comes next.