On July 11, 2025, Bitcoin's price surged to an all-time high of $118,404. Key factors driving this increase include institutional demand and dwindling supply.
Institutional Demand and Supply Reduction
In recent weeks, major asset management firms like BlackRock, Fidelity, and VanEck have injected billions into Bitcoin ETFs. Blockchain data from CryptoQuant indicates a consistent rise in the amount of BTC exiting exchanges, reflecting a shift of assets to cold wallets and reducing selling pressure. Both institutional funds and retail investors are currently buying, constraining Bitcoin's circulating supply.
Macroeconomic Factors and Technical Indicators
Expectations of Federal Reserve interest rate cuts and a weakening dollar have significantly boosted Bitcoin's status as a safe-haven asset. Short but powerful price rallies have turned the previous resistance level around $108,000 into support, marking it as a critical threshold.
Future Price Movement Analysis
Analysts noted that the Relative Strength Index (RSI) has not yet reached overbought levels, indicating the potential for further increases. If Bitcoin stabilizes above $120,000, a new price discovery zone at $130,000 is anticipated. However, if prices drop below $107,000, cautionary fatigue signals may arise. Despite potential downturns, the current macroeconomic context provides a robust foundation for recovery.
The sharp rise in Bitcoin's price amid institutional demand and dwindling supply on exchanges highlights its growing role as a digital asset and store of value. Current trends suggest further potential increases.
