Bitcoin Reaches New All-Time High of $120K on Coinbase

Bitcoin’s ascent to $120,000 was notably driven by BlackRock’s spot Bitcoin ETF (IBIT), managing 700,000 BTC and $83 billion in assets. Many institutional and treasury managers increased their Bitcoin acquisitions in anticipation of positive price movements.

President Trump’s bullish comments via Truth Social and the U.S. administration’s announcement of a “Crypto Week” in Washington D.C. played crucial roles by increasing market visibility and confidence amid this rally.

BlackRock’s ETF stood as the largest contributor to capital inflows, showcasing institutional involvement as a decisive factor. This generated a positive market sentiment, with minimal profit-taking noted among long-term BTC holders.

“The surge in institutional allocation shows a decisive pivot towards Bitcoin, characterized by accelerated acquisition trends.” — Industry Strategists

Long-term holder metrics indicated strong holder conviction, while short-position liquidations were marked by high activity of over $20 million, evidencing significant betting against BTC’s upward movement now disproven by current prices.

Observers reference the 2017 Bitcoin rally that featured similar upward trends, albeit within contrasting macroeconomic environments. Institutional actors currently provide more stability to this surge, enhancing its credibility.

Given current trends, experts foresee a potential continuation of Bitcoin’s upward trajectory. Yet, short-term volatility could still prompt a decline if prices waver near the current peak, signaling potential price adjustments based on historical data.