Bitcoin's New Baseline: $100,000 Price & $2 Trillion Market Cap
Last week was a truly remarkable one for Bitcoin, with the OG token breaching record-breaking levels and the market cap rising firmly above large U.S. corporations.
For Bitcoin, the new baseline seems to be a price above $100,000 and a market capitalization above $2 trillion. That in itself is a big win for the top crypto token.
The rise comes even as Wall Street stocks fell from all-time highs toward the end of the week, and at the start of this week, gold advanced for a fourth straight session.
Crypto skeptics are being outpaced as Bitcoin experiences a remarkable surge, resulting in the liquidation of more than $1 billion in short positions within 24 hours leading into the weekend.
During that timeframe, over 279,000 traders experienced the complete loss of their positions as Bitcoin skyrocketed to an unprecedented peak of $118,847, based on data gathered by Coinglass.
The most significant individual Bitcoin liquidation occurred on the HTX exchange, amounting to $88.5 million. In total, approximately $1.29 billion in positions were eliminated across all tokens, marking the highest figure this year.
Bitcoin surged out of a prolonged period of stagnation late on Thursday, coinciding with a trade announcement from US President Donald Trump that caused a decline in stock prices.
Early on Friday, the original cryptocurrency achieved a milestone of $118,000 for the first time, prompting some options traders to target levels as high as $150,000.
The cryptocurrency market experienced significant growth, with various tokens, including Ether and Cardano, achieving substantial increases.
Positive indicators are emerging across multiple fronts, including increased ETF inflows and a Congressional committee designating the upcoming week as “Crypto Week.”
Recent indicators suggest that China, having prohibited digital-asset speculation for four years, may be reconsidering its stance on the matter.
Market participants and portfolio managers attempting to decipher the recent surge are presenting a range of potential factors, including Bitcoin's appeal as a refuge from trade disruptions, an influx of retail capital, and several technical drivers.
Several market observers noted that the interplay of reduced volatility and a steady stream of favorable updates regarding US regulations recently has created an environment conducive to sustained growth.
The recent disparity between equities and cryptocurrencies sharply contrasts with the market movements that ensued after the tariff shock on April 2, dubbed “Liberation Day” by Trump.
Subsequently, both Bitcoin and equities experienced a significant decline before rebounding as Trump declared a halt in tariffs—with Bitcoin notably outperforming the S&P 500 index during the recovery phase.
On Friday, Bitcoin experienced an increase of up to 4.6%, reaching just under $119,000, while Ether surged past $3,000 for the first time since February, although it later reduced its gains.
On Thursday, funds focused on both tokens experienced their second-largest daily inflows.
To add to Bitcoin's bullish sentiment, the U.S. House leadership has declared this week as the ‘crypto week,’ and lawmakers will take up the GENIUS Act and CLARITY Act.
With the regulatory action in the U.S. driving crypto bulls, Bitcoin seems poised for another run to a new ATH.
There is optimism for more adoption due to the possibility of ETFs backed by currencies like Solana being approved by the US Securities and Exchange Commission.
The Digital Asset Market Clarity (CLARITY) Act, sometimes called crypto's market structure bill, is another potential driver. The CLARITY Act seeks to establish a thorough regulatory framework, which involves dividing up duties between the SEC and the Commodity Futures Trading Commission.
A key committee in the US Senate engaged in discussions regarding the proposed regulation of digital assets, where Republicans advocated for a 'softer touch' strategy. At the same time, Democrats raised concerns about possible loopholes and conflicts of interest.
During Wednesday's session, the Senate Banking Committee made sure that the bitcoin market structure legislation is still on track to be completed by the panel's September 30th deadline.
This week, lawmakers in the House will likely consider their own suggestions.
Investors in the cryptocurrency space are anticipating that a series of long-awaited policy advancements for the sector, expected this week, may attract fresh capital into the asset class.
The optimism contributed to Bitcoin reaching a new peak on Friday, also providing a lift to US-listed cryptocurrency stocks.
Beginning Monday, the House of Representatives will engage in discussions regarding a set of cryptocurrency bills aimed at establishing the regulatory framework that the digital asset sector has sought for an extended period.
The requests have caught the attention of Trump, who has branded himself the "crypto president" and has encouraged lawmakers to reform regulations to benefit the sector.
Bitcoin price hit a record as bullish momentum builds, nearing $120,000 after sharp gains in recent days.
Some Red Flags
The recent surge in Bitcoin's value has raised concerns among certain market participants.
As cryptocurrency becomes integrated into the conventional financial landscape, certain experts have cautioned that the excitement might be surpassing the actual situation.
Given the potential for upcoming fluctuations, some experts have advised individuals to take a moment to consider their investment timelines before making any commitments.
Some analysts have expressed concerns that the Trump administration is making excessive concessions to the cryptocurrency sector, potentially compromising the safety of consumers and individual investors.
Trump has encountered scrutiny from political opponents and ethics specialists concerning the possible conflicts of interest tied to his family's cryptocurrency endeavors.
The administration has stated that there are no conflicts of interest regarding Trump, noting that his assets are held in a trust overseen by his children.
What Technical Analyses Are Telling Us?
TradingView's BTCUSD technical analysis gauge shows a buy signal in the week ahead.
The gauge is an overview of Bitcoin based on widely recognized technical indicators, including moving averages, oscillators, and pivots.
The oscillators' indicators point to a 'neutral' sign, while the moving averages' indicators show a 'strong buy' stance.
TradingView shows a favorable analysis for Bitcoin.
Separately, InvestTech's Algorithmic Overall Analysis gives a 'positive' score of 93 for Bitcoin. In the short term, according to InvesTech's analysis, Bitcoin has recently surged upward, breaking free from a nearly horizontal trend channel in the short term.
This indicates a sustained robust progression, and the token is currently encountering support as it may react towards the upper boundary of the trend channel.
The price has experienced a significant increase following the favorable indication from the rectangle formation upon breaking through the resistance level at $107,710.
The target of $115,727 has been achieved, yet the pattern continues to indicate movement in the same direction.
The price chart shows no resistance, suggesting a potential for further upward movement. Should there be a downturn, the token finds support around the $109,000 mark.
The RSI has surpassed 70 following a notable price increase over the past few weeks. The OG token exhibits robust positive momentum, suggesting a potential for further appreciation.
In the medium-term timeframe, InvestTech analysis shows that the price of Bitcoin is currently positioned within an upward trend channel, indicating a positive trajectory over the medium to long term.
This reflects growing confidence among stakeholders and suggests an ongoing upward trend. The OG token is generally evaluated as having a favorable technical outlook for the medium to long term.
The Daily Total Net Open Interest (Delta) has surged to $663.95 million, according to data from SoSoValue.
That suggests an increase in open contracts for calls and indicates that market makers need to buy more underlying assets to hedge their positions, which typically leads to the purchase of more ETFs.
The total daily net inflows into ETFs as of July 11 were over a billion dollars, with ETFs now accounting for 6.43% of Bitcoin's market cap.
Overall, Bitcoin is generally evaluated as having a favorable technical outlook for the near term.
Elsewhere
Blockcast
Licensed to Shill IV: Tokenized Securities - Ownership & Rights; Navigating Crypto Transparency
Takatoshi Shibayama, Lisa JY Tan, and Nikhil Joshi look at token transparency frameworks and the responsibilities of disclosure. They also chat about the implications of tokenized securities, the risks associated with tokenized assets and the future of tokenization in the financial ecosystem.
Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama . Previous episodes of Blockcast can be found here , with guests like Davide Menegaldo (Neon EVM), Jeremy Tan (Singapore parliament candidate), Alex Ryvkin (Rho), Hassan Ahmed (Coinbase), Sota Watanabe (Startale), Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on our recent shows.
Blockhead is a media partner of Coinfest Asia 2025. Get 20% off tickets using the code M20BLOCKHEAD at https://coinfest.asia/tickets .
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