Main Points:
- Bitcoin reached an all-time high above $112,000 for two consecutive days, buoyed by dovish Federal Reserve signals and robust U.S. equity markets.
- Nvidia’s historic $4 trillion market capitalization and Nasdaq gains fueled risk-on sentiment that spilled into cryptocurrency markets.
- Options data show rising open interest at $120,000 strikes and a low put-call ratio, confirming sustained bullish positioning.
- Spot market order flow reveals heavy market-on-close buy orders underpinning the surge with real demand.
- U.S. regulatory developments—Treasury’s formal repeal of DeFi broker reporting rules and Senate approval of a crypto-friendly regulator—have intensified easing expectations.
- Market watchers are eyeing the upcoming “Crypto Week” in the House (July 14–20), U.S. CPI on July 15, and retail sales on July 17 as key catalysts.
Market Catalysts
Over July 10–11, Bitcoin broke past its previous high of $111,900 to trade above $112,000, reflecting renewed risk appetite among investors. The primary spark was dovish language in the Federal Reserve’s June meeting minutes, which hinted at possible rate cuts later in 2025, undermining the U.S. dollar and lifting speculative assets. Simultaneously, U.S. initial jobless claims fell to a seven-month low, further boosting equity markets and indirectly supporting Bitcoin.
In equities, Nvidia reached a $4 trillion market cap, propelling the Nasdaq Composite to fresh highs. This “tech-led” rally created a spillover effect into digital assets, positioning Bitcoin as a beneficiary of broad risk-on flows.
Institutional Participation and Options Sentiment
Institutional inflows have remained strong, driven in part by spot Bitcoin ETFs managed by the likes of BlackRock and Fidelity, which now hold nearly $148 billion in BTC. On the options front, open interest above the $120,000 strike has surpassed 20,000 contracts, while the put-call ratio hovers at multi-month lows—classic indicators of a market expecting further upside.
On-Chain and Order Flow Dynamics
On-chain data and spot exchange order books point to real-money buying. Market-on-close orders have dominated, signaling that end-user demand—not just algorithmic or arbitrage flows—has driven the record prices. This is supported by trading volume spikes on major venues and the visibly rising bid-ask skew toward higher price levels on U.S. platforms.
Below is a visual representation of Bitcoin’s price trend over the past week:
Refer to Figure 1: Bitcoin Price Trend (July 5–11, 2025)
Regulatory Developments and “Crypto Week”
In addition to market forces, regulatory shifts have stoked optimism. On July 10, the U.S. Treasury Department formally revoked a controversial crypto broker reporting rule that had mandated customer transaction disclosures for DeFi platforms, following bipartisan Congressional action. This rollback is seen as a significant relief for decentralized exchanges.
Meanwhile, the U.S. Senate confirmed Jonathan Gould as head of the Office of the Comptroller of the Currency, a move widely regarded as pro-crypto due to his prior support for improved bank access to digital asset services. Together, these actions have heightened expectations of further easing in the regulatory landscape ahead of the House’s “Crypto Week” from July 14–20, 2025.
Outlook and Key Dates
With Bitcoin enjoying such robust momentum, the near-term outlook hinges on macroeconomic releases and legislative hearings:
- July 14–20: U.S. House “Crypto Week” hearings.
- July 15: U.S. Consumer Price Index (CPI) report.
- July 17: U.S. retail sales data.
A continued dovish Fed, combined with positive legislative signals, could propel Bitcoin toward $120,000 and beyond. Conversely, hawkish surprises or trade-negotiation setbacks may trigger profit-taking.
Conclusion
Bitcoin’s back-to-back all-time highs above $112,000 reflect a confluence of factors: dovish monetary policy cues, a booming tech sector led by Nvidia and Nasdaq, and meaningful regulatory rollbacks. Institutional vehicles like spot ETFs and option strategies reveal that both professional and retail participants are positioned for more upside. As “Crypto Week” approaches and critical U.S. economic data loom, investors will closely watch for catalysts that could either reinforce or derail this powerful rally.
