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Bitcoin Surges to New Highs, Momentum Points to Further Gains
Summary: Bitcoin continued its remarkable rally this week, smashing its previous record to reach nearly $112,000 per coin on Tuesday, according to CoinMarketCap data. The cryptocurrency's price surged almost 3 percent that day, and by Wednesday, it extended its advance to top $113,000. This sustained ascent suggests the current upward trend for Bitcoin is far from ...
Bitcoin continued its remarkable rally this week, smashing its previous record to reach nearly $112,000 per coin on Tuesday, according to CoinMarketCap data. The cryptocurrency's price surged almost 3 percent that day, and by Wednesday, it extended its advance to top $113,000.
This sustained ascent suggests the current upward trend for Bitcoin is far from exhausted.
The Fed's June meeting minutes revealed internal divisions on the path forward for interest rates.
While a majority of participants believed lowering the federal funds rate would be appropriate this year—though not in July—and preferred to wait for clearer economic signals, a minority of hawkish officials argued against cuts due to persistent inflation. Conversely, a smaller dovish faction expressed readiness to consider a rate cut at the next meeting if data allowed. Despite these differing views, the predominant signal for potential rate cuts this year significantly boosted market expectations for looser liquidity, acting as a positive macroeconomic catalyst for assets like Bitcoin.
Strong Conviction Among Long-Term Investors
Bitcoin's latest price discovery is rooted in robust on-chain fundamentals, particularly the unwavering conviction of long-term holders (LTHs). Data from ARK Invest and Glassnode points to a powerful underlying support for the market.
The latest "Bitcoin Monthly Report" from ARK Invest reveals that long-term holders now control 74 percent of the total Bitcoin supply, marking a 15-year high. This substantial accumulation by experienced investors signals strong belief in Bitcoin's future price appreciation, as they opt to hold rather than sell even as prices climb.
Glassnode data further supports this trend, showing a steady decline in Bitcoin balances on exchanges since July 2024. Historically, sharp reductions in exchange balances have preceded significant Bitcoin price rallies, as investors move their holdings to private wallets for long-term safekeeping. If this pattern persists, reduced selling pressure could provide ample room for the current bull market to extend. While a short-term cooling of market enthusiasm was indicated by the MVRV momentum metric in Q2, long-term holders' firm stance lends considerable resilience to Bitcoin's price against minor fluctuations.
Analysts Project Further Ascent
Technical analysts and market observers are largely optimistic about Bitcoin's potential for further gains. TradingShot analysts highlight Bitcoin's clear upward channel since November 2022, noting the cryptocurrency has successfully turned its previous "bull flag" top into a support level — a strong bullish signal. They project a technical target of $168,500.
Adding a macro perspective, prominent trader Zerohedge suggested that if Bitcoin's fractal pattern with M2 money supply holds, it could enter a parabolic rally after its current consolidation period.
Historical data from Glassnode further bolsters this outlook, drawing parallels between the current cycle and the 2017 and 2021 bull markets. Both periods saw parabolic ascents for nearly a year after similar stages, suggesting significant remaining upside if history repeats. Crypto analyst Rekt Capital also projects a potential peak around October, approximately 550 days after the April 2024 halving event, if Bitcoin mirrors its 2020 behavior.
Bitcoin's latest record high is the culmination of favorable macroeconomic conditions, increasing institutional adoption, and strategic corporate accumulation. Given the strong market dynamics, Bitcoin's upward trajectory appears set for a more robust acceleration in the latter half of the year.
