Bitcoin price hits record high as ETF demand overwhelms bearish market setup

Bitcoin has officially developed the price discovery mode, breaking its high May, because the lowering indicators failed to contain flows carried out by ETF, an increasing adoption of the business balance sheet and the macro tail winds. The traders who bet against the escape now feed the next stage of the rally.

July 9, Bitcoin (BTC) increased by more than 2% to negotiate just above its anterior summit of $ 111,970 set in May. The rally challenged a wall of skepticism: a short interest had climbed to $ 35 billion before the move, while the technical indicators displayed downward divergences.

The summit of all Bitcoin time could be considered as a confirmation that institutional capital flows, and not on the retail lever effect, now dictate the inflection points of crypto. The original cryptocurrency entered the unexplored territory in the midst of a macro environment combined by bellicist work data and a sudden drop in tariff expectations, defying the short-term lower feeling that had grasped markets earlier in the week.

Institutional tsunami, macro tail needles defy lower resistance

Bitcoin rupture arrives at a time when traditional engines of cryptographic gatherings, such as halves and speculative retail euphoria, were sidelined by more sustainable capital flows.

What appeared as a counter-intuitive price action, when the BTC has skyrocketed despite the cooling bets and the increase in short positions, reveals a fundamental market change. The 35 billion dollars of short -term interests that have accumulated before break have become fuel for the rally, because FNB entries and business purchases have created a supply compression that forced the bears to cover the positions.

The data show that the FNB Bitcoin absorbed 245,000 BTC in the second quarter, which is equivalent to almost 1% of the total supply, while public enterprises beyond the strategy have added to their bitcoin to their balance sheets. Standard approved analysts call this a “new flow regime”, where institutional absorption exceeds the new offer of minors by a margin of 3: 1.

At the same time, the wider risks markets have refreshed around an American economy surprisingly resilient. The report on the payroll of non-vows in June exceeded expectations, with 147,000 added jobs and the unemployment rate fell to 4.1%.

These data caused a high repair of interest rate expectations. CME Fedwatch now only shows 5% of a July drop in July, 24% earlier this week. Although the stricter policy does not pressure on risk assets, the rise in power of Bitcoin suggests that it is less redesigned as a high beta active and more as a liquidity magnet in a world limited in capital.

The S&P 500 and the NASDAQ also won on Wednesday, the DOW adding 164 points, or 0.4%.

Favorable geopolitics?

Geopolitics added unexpected back winds. On July 9, the Trump administration pulled warning fire in Six Nations, stirring Algeria and Iraq with prices of 30%, while Brunei, Libya and Moldova face 25%tasks, and the Philippines learned at 20%.

This marks the last climbing in a wider price offensive, following threats to Japan and South Korea earlier in the week. Historically, such measures trigger inflation, the disturbances of the supply chain and equity sales. But Bitcoin’s strange Calle suggests that traders do not panic, at least not yet.

According to James Butterfill of Coinshares, this can be a temporary illusion. “In the short term, prices have slowed down growth and frightening risk assets, including Bitcoin,” he noted in a report earlier this year.

Nicolai Sondergaard de Nansen warns against the surface of the frenzy. “The increase in pricing announcements will probably scare the market,” he told Crypto.News, “but players are conditioned to expect last minute agreements.” The real test occurs on August 1, and if the prices take effect, the complacency of the Bitcoin beaches could break.