Bitcoin 
$75,815 hit an all-time high of $122,600 on July 14, 2025, marking a remarkable surge that has captivated the cryptocurrency market. This sharp rise occurred without significant retracements, drawing attention to the dynamics of this unprecedented climb and prompting market participants to seek insight into the drivers and potential trajectory of Bitcoin’s performance.
The Demand-Supply Imbalance Driving Bitcoin
While only 450 BTC are produced daily, spot ETFs are acquiring 10,000 BTC in a single day. This 20-fold demand-supply gap, highlighted by Bitwise Investment Director Matt Hougan, is a primary force behind Bitcoin’s rally. The associated volume flowing into institutional wallets is considerable, preventing the market from gaining immediate liquidity.
Behind this record-breaking momentum lies BlackRock’s IBIT ETF. Over 200 trading days, this fund accumulated $84 billion in assets, achieving in less than a year what took the GLD ETF, based on gold, 15 years. With over 700,000 BTC in its portfolio, IBIT has decisively cemented its dominant position, leaving its closest competitor 100,000 BTC behind.
The robust institutional purchases have catalyzed an influx of individual investors. Exchanges, faced with limited supply and rapidly dwindling seller pools, strive to meet growing demand, propelling Bitcoin’s price to new peaks within seconds.
The Impact of US Monetary Policy and Geopolitical Tensions
Despite high interest rates, the US dollar has depreciated by 11% over the past six months. Bitcoin, perceived as a safe haven, has simultaneously experienced a $10,000 increase. The House of Representatives’ passage of an expansive fiscal spending package on July 3 fueled inflation expectations, accelerating the shift of investors towards Bitcoin.
Geopolitical developments, including President Donald Trump’s 50% tariff on copper and additional sanctions on Brazil, have redefined risk appetites. Investors are increasingly using Bitcoin to offset growing uncertainties in traditional markets.
According to Geoff Kendrick, Head of Digital Asset Research at Standard Chartered, Bitcoin could reach $135,000 by the end of the third quarter and $200,000 by year-end amidst market turmoil. Hougan similarly indicated that continued demand pressure on supply opens the door to achieving the $200,000 target this year.
