While Bitcoin’s journey to $120,000 might have seemed inevitable to those who’ve been paying attention to the cryptocurrency’s relentless march upward, the milestone achieved in July 2025 nonetheless represents a remarkable inflection point in digital asset valuation—one that has left the cryptocurrency hovering near $118,000 amid the kind of minor fluctuations that would constitute major news in any other asset class.
The momentum analysis reveals Bitcoin entering a new price discovery phase with most of its supply in profit, a condition that historically accompanies both euphoria and volatility. Short-term holders have exceeded their average cost basis by approximately one standard deviation around $120,000, signaling the kind of buying interest that makes traditional economists reach for their blood pressure medication.
Meanwhile, fresh capital influx includes new holders acquiring roughly 140,000 BTC over two weeks—a development that would be unremarkable if we weren’t discussing an asset whose total supply is capped at 21 million coins.
The next major resistance target sits around $136,000, representing two standard deviations from the cost basis average, a level that has historically proven formidable during previous uptrends. Of course, calling anything “historical” in Bitcoin’s brief existence requires a certain flexibility with temporal perspective.
U.S. regulatory developments have contributed to this bullish sentiment, with the upcoming “crypto week” debates in the House of Representatives and the introduction of the GENIUS Act targeting stablecoins. These legislative moves toward clarity—a concept previously as elusive as Bitcoin’s creator—have reduced regulatory complexity that once inhibited market growth.
Supply constraints continue exerting upward pressure as demand outpaces new coin release, though some analysts note these limitations were supposedly already priced in (a phrase that appears with suspicious frequency in financial analysis). Record spot Bitcoin ETF inflows reached $1.18 billion on July 10, demonstrating the continued institutional appetite for cryptocurrency exposure through regulated investment vehicles. Despite some market information becoming temporarily unavailable, traders continue to rely on alternative data sources and analytical platforms to maintain their trading strategies.
New market participants have been particularly active during dips below $116,000, with institutional investors increasingly participating since the $120,000 breakthrough.
The enhanced market depth from institutional involvement helps absorb volatility, with approximately 196,600 BTC changing hands during recent price dips—a volume that contrasts sharply with the retail-driven spikes of earlier cycles. Supporting this institutional infrastructure, stablecoin market cap has expanded to over $250 billion, providing crucial liquidity rails for digital asset trading and settlement.
