Cryptocurrency Bitcoin surges past $123,000 at the initiation of the Cryptocurrency Week within U.S. borders.
In a remarkable turn of events, Bitcoin, the world's leading cryptocurrency, has reached a new historic record of $2.42 trillion in market capitalization. This surge has been accompanied by a significant rise in activity and market capitalization for Ethereum, Solana, and other altcoins, suggesting that Bitcoin's rally could drag the rest of the market to new heights.
The rally is underpinned by several key factors. On-chain metrics show a reduction in the available supply on exchanges, reinforcing the accumulation narrative for Bitcoin. Institutional demand, driven by large wallets, including whales and financial institutions, has resumed their massive purchases of Bitcoin. This trend is further boosted by the growing institutional confidence and strategic accumulation.
The Trump administration's pro-cryptocurrency agenda, aiming to make the United States the global capital of Web3 innovation and digital assets, has also played a role in this upward trajectory. The investment in crypto assets, however, is not fully regulated and may not be suitable for retail investors due to its high volatility, with a risk of losing the entire amount invested.
Analysts view "Crypto Week," a series of discussions and legislative proposals set to take place in the U.S. Congress, as a catalyst for the growth of Bitcoin and other cryptocurrencies. The CLARITY Act, the GENIUS Act, and the Anti-CBDC Surveillance State Act are among the bills to be discussed, potentially reducing legal uncertainty and opening the door to wider adoption.
Some analysts predict that if key laws are passed during Crypto Week, Bitcoin's price could surpass $125,000 or $130,000 by the end of the month. In fact, Bitcoin could reach $130,000 before the end of July, according to some analysts' predictions.
The predicted rise of Bitcoin's price to around $130,000 by the end of July 2021 is driven primarily by several interrelated factors: strong bullish sentiment among traders, technical patterns indicating breakout, increasing institutional adoption and ETF growth, expectation of a prolonged bull market, market dynamics and investor inflows, and upcoming Federal Reserve policy meeting.
Despite the bullish outlook, it is worth noting that Bitcoin remains volatile, and its price volatility is expected to increase due to its current uncharted territory. Resistance at $120,000 could potentially cause local corrections.
As of now, the current Bitcoin price stands at around $122,000, according to CoinMarketCap data. Bitcoin reached a new all-time high (ATH) of $123,091 on July 14, 2021. The Crypto Week in the United States, which began on July 14, 2021, aims to redefine the regulatory framework for cryptocurrencies. Bitcoin spot ETFs have surpassed $150 billion in assets under management (AUM).
With the backing of major investors and an evolving regulatory environment, cryptocurrency is moving towards consolidation as a global, legitimate, and strategic asset. However, investors are advised to closely monitor technical indicators for signs of trend reversals, as the realization of this price target is not guaranteed.
The surge in Bitcoin's market capitalization is not only driven by its own on-chain metrics and institutional accumulation, but also by the growing interest from financial institutions and technological advancements. With the backing of whales, financial institutions, and the Trump administration's pro-crypto stance, there is a growing trend of technology being utilized for financing and investing in cryptocurrencies, including Bitcoin.
