TradingKey - On July 14, Bitcoin made history by breaching the $120,000 threshold for the first time, peaking at $123,278 and setting a new all-time high. Simultaneously, the total market capitalization of cryptocurrencies surged past $3.9 trillion, signaling robust momentum in the crypto market.

The surge in Bitcoin prices can primarily be attributed to several factors, including advancements in U.S. cryptocurrency legislation and a spike in institutional capital and ETF demand.

On the legislative front, the U.S. House of Representatives has designated the week of July 14 as "Cryptocurrency Week" and has begun reviewing three key bills. 

• The “Genius Act” aims to create a federal regulatory framework for stablecoins and allows private enterprises to issue digital dollars.
•  The “Clarity Act” focuses on enhancing transparency in digital asset markets. 
•  The “Anti-CBDC Surveillance National Act” seeks to limit central banks' monitoring powers over digital currencies. 

If these bills pass, they will provide clear regulatory rules for the cryptocurrency market and eliminate policy uncertainties, thereby boosting institutional investor confidence.

Institutional capital and ETF demand have emerged as critical forces behind Bitcoin’s price surge. Recently, U.S. Bitcoin ETFs recorded $2.7 billion in net inflows within a single week—the fifth-largest weekly inflow in history—with total assets under management (AUM) reaching $151 billion. Unlike previous bull markets, this cycle is dominated by institutional capital, with retail investor participation notably subdued.

The rapid rise in Bitcoin prices raises varied opinions among market analysts regarding its future trajectory.

Notably, the recent surge in Bitcoin prices has positively impacted the performance of Bitcoin-related stocks, further capturing investors' attention. Companies such as Coinbase, Robinhood, and MicroStrategy have all shown strong performance.

（來源：TradingView）

Analysts point out that as volatility continues in the Bitcoin market, it remains to be seen how the fierce tug-of-war between bulls and bears will evolve; everyone is watching closely.

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