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Bitcoin Breaks $120,000: Will Institutional Capital and Policy Tailwinds Spark a New Surge?
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On July 14, 2025, Bitcoin's price surged past the $120,000 mark, setting a new all-time high. According to real-time data from MEXC, one of the world's leading digital asset trading platforms, the BTC/USDT spot price stood at 122,559.92 USDT at the time of writing, with market enthusiasm continuing to climb. Yet beneath the renewed cries of a "bull market comeback," the deeper story lies in the structural drivers powering this rally. From sustained institutional accumulation and increasingly positive policy expectations to a more sophisticated funding structure and evolving investor behavior, this surge is not just a price jump but a systemic revaluation of Bitcoin's role as the store of value in the global digital asset landscape.
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1.Bitcoin's Rally Is Not Just a Price Event, but a Revaluation
This round of Bitcoin's surge is not driven by a single piece of good news, but by the combined effect of multiple macro and industry-specific factors. Strong performance in tech stocks, sustained institutional inflows, accelerated corporate treasury adoption, record ETF holdings, and increasingly positive policy signals together form the foundation of this structural uptrend.
Unlike the sentiment-driven bull run of 2021, this rally shows characteristics of being more institutionalized, fundamentally driven, and less speculative. Traditional financial capital, corporate balance sheets, and evolving regulatory expectations have become key variables pushing the market higher.
2. Institutional Buying Drives Price Action, ETFs Become the Entry Vehicle of Choice
According to ARK Invest's "Bitcoin Monthly" report, by the end of June, long-term holders controlled around 74% of Bitcoin's supply, a nearly 15-year high. Meanwhile, the share held by short-term traders has been steadily declining, indicating a structural shift.
Glassnode data shows Bitcoin's RHODL ratio has climbed to this cycle's peak, signaling that the market structure is changing. More Bitcoin is now concentrated in the hands of medium and long-term holders, while short-term trading activity remains subdued. This shift is widely seen as a sign of a cyclical transition and cooling speculative sentiment. As an on-chain metric, the RHODL ratio helps track Bitcoin’s distribution across holding periods, reflecting changes in participant behavior and market cycles.
Meanwhile, BlackRock's IBIT ETF holdings have surpassed 700,000 BTC, accounting for 3.33% of total supply. Bloomberg data shows its annualized management fee revenue has now overtaken that of BlackRock's own S&P 500 ETF (IVV), making it a profitable benchmark for traditional finance’s push into the crypto market.
ETFs not only provide institutions with a compliant entry channel but also reshape how Bitcoin correlates with traditional assets. Investors increasingly view Bitcoin alongside growth tech stocks as a future-driven asset.
3. Companies Launch a Treasury Adoption Wave: Bitcoin Emerges as a New Type of Corporate Reserve Asset
Since July, traditional industry players have kicked off a new wave of Bitcoin treasury adoption, spanning sectors such as hospitality, real estate, food, healthcare, and manufacturing:
Mexican real estate operator Murano launched a $500 million SEPA program and acquired 21 BTC.
Japan's Metaplanet holdings surpassed 2,200 BTC, officially transforming into a Bitcoin treasury company.
Firms operating across China, Hong Kong, and the U.S. such as DDC, medical technology company Semler Scientific, and quant trader Hilbert Group have all announced new or expanded BTC purchases;
Even Shenzhen-based manufacturers, mobility-tech company Webus, and veteran crypto platform Bakkt have joined the trend.
Behind this phenomenon lies a shift in corporate thinking about liquidity and capital appreciation in the context of a strong dollar, peak interest rates, and a weakening real estate sector. Bitcoin is increasingly seen as a strategic asset with inflation resistance, high liquidity, and global pricing advantages, evolving from an investment target into a reserve tool.
4. Policy Warming and Greater Regulatory Clarity Strengthen Market Confidence
During the week of July 14, the U.S. Congress is set to hold “Crypto Week,” with the GENIUS Act and CLARITY Act heading to the President and the Senate for review, respectively. While speculation about the U.S. government establishing a strategic Bitcoin reserve has cooled, ongoing policy discussions continue to bolster market confidence in a compliant, regulated path forward.
Regulatory boundaries are gradually becoming clearer, and crypto assets may secure more quasi-sovereign status: particularly through breakthroughs in corporate accounting recognition and state-level purchasing authorization.
5. On-chain Data Confirms Structural Uptrend, Market Risk Appetite Rebounds
On-chain data supports the view of a structural rally. According to Coinglass, during Bitcoin's surge to new highs, over $340 million in short positions were liquidated within just a few hours, an example of a classic short squeeze, signaling market momentum has shifted decisively toward the bulls.
Meanwhile, the strength of the U.S. tech sector and the AI sector—led by Nvidia—has provided an external catalyst for Bitcoin's rally. Nvidia’s market capitalization surpassed $4 trillion, indirectly boosting overall market risk appetite. The correlation between Bitcoin and tech assets has been especially tight in the current cycle.
6. Conclusion: "Digital Gold" in a Complex Structure Still Has Room to Rise
Bitcoin's surge past $120,000 reflects the combined effects of capital structure reshuffling, policy dynamics, corporate balance-sheet reallocation, and a rebound in risk appetite. While short-term technical corrections are possible, from a medium- to long-term perspective Bitcoin’s role as a “global digital value anchor” is becoming increasingly solid.
Looking ahead, as more institutions enter the market, regulatory frameworks mature, and global asset allocation logic evolves, Bitcoin could see a truly institutional bull market in the second half of 2025. At that point, Bitcoin would no longer be just a speculative asset but a strategic allocation for mainstream global capital.
At this critical turning point, choosing a platform with strong liquidity, diverse products, and rapid market responsiveness is essential. As a leading global digital asset platform, MEXC supports not only major BTC spot and futures trading but also offers tools like copy trading and grid trading: helping different types of investors navigate volatility, time their entries well, and trade with greater confidence.
Whether you’re a long-term holder or a short-term opportunity seeker, now is the moment to re-evaluate your Bitcoin allocation strategy. Choose MEXC to seize the next growth cycle and start your crypto asset journey with confidence.
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1) Open and log in to the MEXC App or official website.
3) Choose your order type, enter the quantity, price, and complete the transaction.
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