Bitcoin Hits New All-Time High, Exceeds $116,000

Bitcoin just punched through $116,000. It’s a new all-time high, a number that catches the eye and makes you wonder. Just yesterday, it blew past $113,800. This oldest digital asset has been on quite a run for months now. It has almost doubled in value over the past year, climbing from $57,899.

• Bitcoin’s surge to new all-time highs has sparked debate about its future trajectory. Many are wondering if it can reach $120,000.
• Institutional interest, with companies like Michael Saylor’s MSTR accumulating Bitcoin, is a key driver. This trend is expected to continue.
• The weakening U.S. dollar and technical indicators suggest caution, despite the bullish sentiment. Some analysts point to dollar weakness as a significant factor.

So, the big question on everyone’s mind is this: Can Bitcoin really hit $120,000? Or is this latest surge just a fleeting moment, a quick gasp before settling down? We’ve been watching closely, and there are plenty of opinions swirling around.

The Ascent and Market Whispers

When Bitcoin makes headlines like this, it’s hard not to look back. CoinDesk’s managing editor for Global Policy & Regulation, Nikhilesh De, mentioned that Thursday’s market felt a bit like mid-December 2017. Back then, Bitcoin soared to just under $20,000 for the first time. It had climbed from under $1,000 that year, a truly wild ride.

But the world is different now. In July 2025, interest rates are not the same. The amount of capital flowing into digital assets is far greater. The types of institutions involved have changed. Regulatory interest is much higher. And simply, more people are in crypto than eight years ago. It’s a different ballgame entirely.

One person who certainly has reason to celebrate is Michael Saylor. He’s the executive chairman of Strategy (MSTR). His company has been steadily accumulating Bitcoin since 2020. They’ve gathered 597,325 Bitcoin, almost acting like an exchange-traded fund (ETF) before such products were widely available in the U.S. At today’s new record prices, his holdings are worth a staggering $69.29 billion. That’s a lot of reason to gloat, as he did on social media.

It’s not just Saylor, of course. Many public companies now hold Bitcoin as part of their treasury strategies. This trend shows no sign of slowing down, according to Ryan Gorman, chief strategy officer at Uranium Digital. He sees this accumulation as a key driver.

Gorman is one of those observers calling for Bitcoin to hit $120,000. He points to President Trump’s bullish Truth Social post and the upcoming “Crypto Week” in D.C. These events, he believes, create a situation where buyers simply outnumber sellers. It’s a virtuous cycle, where higher prices encourage more buys, all in anticipation of more good news.

The options market also looks strong. Ryan Gorman noted that calls, which bet on prices rising, outnumber puts, which bet on prices falling. This suggests that institutional money, the “smart money,” expects further upside. With seasonally light trading volumes, there’s less liquidity (ease of buying and selling without moving the price much). This can lead to prices gapping quickly higher. It’s a potent mix, and Gorman wouldn’t be surprised to see Bitcoin hit $120,000 before next week ends, even with uncertainty around tariffs.

Underlying Currents and Technical Signals

What else might be fueling this surge? Some analysts point to U.S. dollar weakness. A CoinDesk contributor, Siamak Masnavi, highlighted an analysis by Kobeissi Letter. They estimated that if the federal funds rate were cut by at least 3%, as President Trump suggested, it could reduce U.S. interest costs by up to $2.5 trillion over five years. This would be an unprecedented move outside of a recession.

Such a cut could reignite inflation, pushing it above 5%. It might also send the U.S. dollar down by more than 10%. In this scenario, asset prices, including gold and the S&P 500, could soar. Gold is currently around $3,324 an ounce, and the S&P 500 recently closed at 6,280.47. Rumors about President Trump potentially replacing the Fed chair, Jerome Powell, before his term ends in 2026, could also accelerate interest rate cuts. This would further weaken the dollar and boost demand for alternative assets like Bitcoin.

Looking at derivatives, Krisztian Sandor, a CoinDesk markets reporter, noted that perp funding rates are neutral or even below neutral for major cryptos. This means there aren’t immediate signs of speculative froth. Charlie Morris, ByteTree’s chief investment officer, put it well: “crypto feels quiet,” but “the quiet bulls are the best.” It suggests a steady, rather than frantic, buying interest.

Omkar Godbole, a CoinDesk analyst, pointed out that Bitcoin is in a “negative dealer gamma zone” between $112,000 and $120,000. What does that mean? It means market makers, who try to keep their portfolios neutral, will have to buy Bitcoin as the price goes up. This buying pressure can actually add to upside volatility. In plain terms, the trend could pick up speed.

While Bitcoin takes the spotlight, altcoins have been relatively quiet. Most large-cap coins saw modest gains of 2% to 5%. There were a few exceptions among the top 50, like Sui, Pepe, and Dogecoin, which saw larger jumps. The CoinDesk 20, an index of major digital assets, was up 3.2% overall.

A Broader View and What Lies Ahead

Some argue that Bitcoin’s new all-time high is more about the U.S. dollar’s weakness than Bitcoin’s inherent strength. Nikhilesh De noted that while $113,800 is a record against the dollar, it’s not the highest Bitcoin has been against other currencies like the Euro. This idea, that Bitcoin’s value depends on which currency you measure it against, has long been a talking point in the industry.

Crypto-linked stocks are certainly feeling the heat. Robinhood and Coinbase, two major crypto exchanges, rose more than 3% on Thursday. Miners like Hut 8, Bitfarms, and HIVE Digital were up over 4%. Interestingly, Circle, a stablecoin issuer and a recent crypto IPO, only saw a modest 0.4% rise.

James Van Straten, a CoinDesk Bitcoin analyst, highlighted a key difference from the 2021 bull run. That period was heavily driven by leverage and derivatives. It saw a significant hash rate correction and bearish on-chain metrics. Plus, the Fed was preparing for rate hikes. Today, the market cycle feels different. We have new buyers in the form of treasury companies, a potentially new Fed chair with an outlook for cuts, and a crypto-friendly President. These are big shifts.

However, it’s not all clear skies. Oliver Knight, co-leader of CoinDesk data and tokens, pointed out that net accounts are still short. This is often seen as a retail indicator. In past cycles, we saw a lot of retail excitement, but that doesn’t seem to be the case this time around. While a record high for Bitcoin looks bullish on the surface, some technical indicators tell a different story.

The daily Relative Strength Index (RSI), a momentum indicator, has made three lower highs. This is a bearish divergence, suggesting the current move might not last long. Trading volume has also dropped off since the initial record high in January. And as mentioned, Bitcoin is still below its record highs against the Euro and British Pound. This points to dollar weakness being a significant factor, rather than just pure Bitcoin strength.

So, where does Bitcoin go from here? The path to $120,000 seems plausible to some, especially with institutional buying and macro tailwinds. But the technical signals and the debate over dollar strength versus Bitcoin strength offer a note of caution. It’s a fascinating moment, isn’t it, watching these forces play out?