This week, Bitcoin hits an all-time high, surging to a record-breaking $123,218 before pulling back. Bitcoin’s rise was a culmination of increased institutional confidence and anticipation of favorable regulatory developments from the White House.
Bitcoin’s rise came as a surprise for many investors as they prepared and positioned themselves ahead of the Consumer Price Index (CPI) release, which is expected to raise inflation to 2.7%.
Bitcoin Reached an All-Time High
Bitcoin climbed past $120,000 for the first time in history, surging even higher to $123,218, which saw the price of Bitcoin increase by 27% over the year. The price increase came out of the blue over the weekend, when price action is lower with lower volumes expected across the board.
One of the main reasons for Bitcoin’s phenomenal surge was attributed to the “Crypto Week,” which saw the US Congress deliberate on several cryptocurrency-related topics and bills. As the US seeks to become the leading nation for crypto users, it adds more confidence to investors.
Since July 9, Bitcoin spot market activity increased by 50%, which indicates strong underlying demand from investors.The spike in volume suggests the price action wasn’t just a pump, but rather a genuine buying interest from investors, even though volumes have stayed below the 2023 average.
Despite these measured approaches, spot volumes are lower at 23.4% under the regular averages, indicating uncertainty for these current levels.
CPI Data and Impact on Investors
The annual CPI came in at 2.7%, which was higher than the expected 2.6% forecast. This uptick from May’s 2.4% reading intensified concerns about the Federal Reserve’s monetary policy stance. It marked the highest level since 2023, and it’s expected to keep rising as Trump approves the “Big Beautiful Bill.”
CPI data had an immediate impact on the market with the US Dollar Index (DXY) surging to 98.5, up 2.1% in July alone. With the dollar strengthening, investors looked to offload risk-on assets and seek more stability.
Additionally, Bitcoin wasn’t immune to the CPI data, as the leading cryptocurrency failed to preserve its all-time high and remain above $120,000. Selling pressure intensified as traders positioned for a potentially more hawkish Federal Reserve stance.
Market Dynamics and ETF Support
Institutional demand continues to drive Bitcoin’s underlying strength, with Bitcoin ETFs recording their biggest day of inflows in 2025 at $1.18 billion on Thursday. Corporate and institutional investors have purchased $15 billion in ETFs over the past two months. What’s more surprising is that retail investors are still sidelined and waiting.
Data reveals a crucial demand zone between $114,000 and $117,500, where more than 189,590 BTC were purchased, representing over $22.3 billion in value. This accumulation creates a significant support level, as many holders are unlikely to sell at a loss. For long-term holders, they are locking up supply, reducing the available Bitcoin for trading and potentially supporting higher prices.
Crypto Week Could See Bitcoin Surge
The US House of Representatives’ focus on cryptocurrency legislation during “Crypto Week” has generated a lot of optimism towards a better regulatory framework for cryptocurrencies. The most significant bill under consideration is the Genius Act, which would establish federal rules for stablecoins, including USDC tokens.
President Trump’s pro-crypto stance has bolstered industry confidence, with his administration signaling support for clearer regulatory frameworks. Since his inauguration, the total cryptocurrency market value has swelled to approximately $3.8 trillion, reflecting broad-based enthusiasm, with Ethereum reclaiming $3,081.94, its highest level since February 2.
What To Expect Next
Bitcoin appears poised to hold its current price level, showing resilience amid strong demand from new buyers around the $100,000 mark. With many investors unlikely to sell at a loss, the cryptocurrency might continue to hover near this range.
Analysts at 10x Research project Bitcoin could reach a year-end target between $140,000 and $160,000. However, potential risks remain, including shifting policies and global geopolitical tensions, which could impact the cryptocurrency’s performance.
While Bitcoin’s future behavior remains uncertain, increased inflows from institutional investors and stronger regulatory frameworks may lead to greater price stability. Ultimately, Bitcoin’s trajectory will hinge not only on market dynamics but also on broader geopolitical events and US monetary policy decisions.
Navigate Crypto Volatility With Professional Guidance
Bitcoin’s journey to new all-time highs demonstrates both the potential and risks inherent in cryptocurrency markets. As institutional adoption accelerates and regulatory clarity improves, opportunities continue to emerge for savvy investors.
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