Bitcoin Hits $123K Ahead of Make-or-Break Week for Crypto

Bitcoin continued its strong performance in July, hitting a fresh all-time peak of $123,091 on Monday morning European time.

The leading cryptocurrency has gained 16.91% so far this month and, after breaking through a major resistance zone around $110K and is set to record its fourth straight month of positive gains. 

Having reached a market capitalization of $2.44 trillion, Bitcoin has become the world’s fifth-largest asset by market value, surpassing Amazon. Only Gold, NVIDIA, Microsoft, and Apple have larger market caps today.

The latest Bitcoin all-time high (ATH) rally appears to be driven by a combination of powerful, overlapping factors, each reinforcing bullish sentiment.

BlackRock’s spot Bitcoin ETF (IBIT) has seen record-breaking growth, hitting $83 billion in assets under management (AUM) and tripling in just 200 trading days. 

Other U.S. Bitcoin ETFs have also attracted billions, though on a much smaller scale compared to BlackRock’s IBIT. Corporate businesses such as MicroStrategy and Metaplanet continue to strengthen Bitcoin demand by adding it to their treasuries.

According to Glassnode, Bitcoin is being accumulated across the board—from the smallest holders to the largest institutions—at an estimated pace of 19,300 BTC per month. That’s significantly higher than the current miner issuance of just 13,400 BTC per month, suggesting demand is outpacing new supply.

Bitcoin is Leaving Exchanges

This is one reason why Bitcoin is leaving exchanges at record levels. The supply of Bitcoin held on exchanges has dropped to multi-year lows, as Bitcoin just posted its longest-ever streak of exchange outflows, surpassing the 2020 pattern that preceded a 200% rally, according to crypto analysts at 10x Research in their latest newsletter.

This trend usually indicates that investors intend to hold their Bitcoin long-term rather than sell it. The last time a similar event occurred, in 2020, Bitcoin’s price increased by 200% shortly afterward.

Critical Week for Crypto and Bitcoin

But the rally may be just getting started. According to 10x Research, Bitcoin’s price could be poised for further movement as three major developments converge this month, each with the potential to shift the trajectory of the entire crypto market.

First, all eyes are on the U.S. Consumer Price Index (CPI) report, set for release on July 15. If inflation data comes in softer than expected, markets are likely to price in a Federal Reserve rate cut as early as September. Lower interest rates generally boost risk assets, making this a critical moment for crypto investors.

Second, lawmakers in Washington are set to vote on new legislation focused on stablecoins and central bank digital currencies (CBDCs). The outcome could redefine how crypto is regulated in the U.S., setting new standards for transparency, oversight, and institutional access.

What’s Next For Bitcoin?

Bitcoin is currently in price discovery mode, with the Crypto Fear and Greed Index hitting 74 today, firmly in “greed” territory.

Crypto traders suggest that Bitcoin may attempt to consolidate in the $120,000 to $130,000 range. While some investors are likely to take profits, potential pullbacks toward the $110,000–$109,000 level are expected to be viewed as healthy corrections rather than signs of a broader trend reversal.

Why This Matters

Bitcoin’s (BTC) explosive price rally isn’t just a chart event. It signals deepening institutional trust and growing scarcity. With major policy shifts ahead, the stakes couldn’t be higher.

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