Bitcoin remains stable around $109K, showing signs of a potential breakout toward $130K.
Institutional demand through ETFs like IBIT is driving supply scarcity.
MicroStrategy and governments are solidifying Bitcoin's role as a strategic reserve asset.
Bitcoin is trading around $109,439 at the time of writing. The cryptocurrency has seen a slight increase from the previous day, with prices moving between a low of $106,798 and a high of $109,610. This shows that the market is holding steady, with Bitcoin moving in a relatively tight range. Investors are closely watching whether this range will break soon, potentially sending the price either higher or lower.
The current level has formed a strong support base around $106,000. This means that many traders are buying whenever the price dips to that level, preventing it from falling further. On the other hand, Bitcoin is struggling to move above $110,000, where selling pressure tends to increase. This creates a short-term resistance that must be broken for the next big rally to happen.
Looking at the charts, Bitcoin is showing signs of forming patterns that usually indicate a potential rise in price. One such pattern is called a “descending wedge,” which generally leads to an upward breakout. Another one is the “cup-and-handle” shape that investors have noticed in Bitcoin’s exchange-traded funds (ETFs). This pattern is often seen as a positive signal, especially among institutional investors.
If Bitcoin can break past the $114,000 resistance level, analysts believe that the price could jump significantly, with some projections pointing to a rally towards $143,000 or higher. Historical trends also support this view, as July has typically been a strong month for Bitcoin. Over the past several years, July has delivered positive returns in most cases.
Also Read - Crypto Retreat: Bitcoin and Ethereum Trade More Like Stocks, Not Gold
Many financial experts and firms are optimistic about Bitcoin’s future. Some forecasts suggest that Bitcoin could reach $120,000 to $140,000 in the coming months. By the end of 2025, estimates range even higher. Major institutions believe Bitcoin could hit $150,000, $170,000, or even $200,000 if the current momentum continues.
One of the key reasons behind these high targets is the increasing interest from large investors and institutions. The demand for Bitcoin is growing, and its supply remains limited. This balance often leads to higher prices. Analysts also point out that with global economic changes and rising inflation, investors are turning to Bitcoin as a store of value, much like gold.
Institutional investment is playing a major role in supporting Bitcoin’s price. ETFs that track Bitcoin, such as the iShares Bitcoin Trust (IBIT), are attracting billions of dollars. These funds make it easier for large investors to gain exposure to Bitcoin without having to buy and store it directly.
In July 2025 alone, Bitcoin ETFs have seen inflows of over $4.5 billion. This means that institutions are buying large amounts of Bitcoin through these funds, reducing the number of coins available in the open market. As demand rises and supply tightens, the price tends to go up.
Large companies and even governments are now holding Bitcoin as a reserve asset. For example, MicroStrategy, a publicly listed software company, recently bought nearly 5,000 more Bitcoins, bringing its total holdings to over 597,000 coins. The company now holds over $64 billion worth of Bitcoin, making it the largest known corporate holder.
Governments are also joining in. The United States recently created a Strategic Bitcoin Reserve, formalizing Bitcoin as part of its national financial strategy. Some U.S. states, like Texas and New Hampshire, have also established their reserves. Other countries, including Pakistan, are exploring the idea of mining and storing Bitcoin as part of their economic plans. This shift from private to public ownership of Bitcoin adds to its legitimacy and long-term stability.
Broader economic trends are also helping Bitcoin. Inflation concerns, increased money printing, and interest in alternative assets are driving more people to invest in cryptocurrencies. The global supply of money is rising rapidly, which often leads investors to seek assets that can hold value over time.
At the same time, regulations around cryptocurrencies are becoming clearer. In the United States, new laws are beginning to offer a more secure framework for crypto businesses and investors. This clarity encourages more institutional participation and reduces fear about sudden legal changes.
Data from blockchain analysis shows that long-term holders, people who have owned Bitcoin for three to ten years, have recently taken some profits. Even with these sales, the market has absorbed the selling pressure well, indicating strong demand. Short-term holders are also participating in this profit-taking, but new buyers are stepping in to buy these coins.
The amount of Bitcoin available on exchanges is at a multi-year low, meaning fewer coins are ready to be sold quickly. This limited supply is another reason the price remains strong. As fewer Bitcoins are available and demand continues to grow, the market sets the stage for future price increases.
Despite the optimism, Bitcoin is known for its volatility. Sharp price drops of 10% to 15% have occurred even during strong bull markets. For example, after reaching an all-time high above $112,000 recently, the price pulled back to about $98,000. Such corrections are normal and help maintain a healthy market structure.
Geopolitical events, regulatory surprises, and economic instability could also affect Bitcoin’s price in the short term. Upcoming political developments, budget announcements, and changes in global trade policy are all events that could create temporary uncertainty. July and August are often more volatile months for Bitcoin, with price swings expected before the final quarter of the year brings more clarity.
Also Read - Selling Bitcoin? Be Aware of the Tax You May Owe
In the short term, the most likely scenario for Bitcoin price is continued movement between $106,000 and $110,000. A strong breakout above $114,000 could quickly send Bitcoin toward $130,000 or even higher. If this rally happens, it would be supported by institutional buying, government reserves, and on-chain data.
Looking ahead to the end of 2025, the base case scenario puts Bitcoin in the $120,000 to $150,000 range. In a highly bullish situation, prices could surge past $200,000 if major catalysts continue to align. On the other hand, a bearish turn in global markets or loss of institutional momentum could cause Bitcoin to revisit the $100,000 level.