Bitcoin Breaks Records Again: 6 Key Drivers Fueling Its Meteoric Rise – How High Can BTC Go?

Bitcoin just punched through another ceiling—leaving traditional finance clutching its pearls. Here’s what’s propelling the rally (and why Wall Street still doesn’t get it).

1. Institutional FOMO hits overdrive

BlackRock’s ETF approval was just the start. Now pension funds are dipping toes—slowly, like they’re testing pool temperature with a billion-dollar toe.

2. The halving effect kicks in

Scarcity 101: Fewer coins minted + same demand = price go brrr. Even goldbugs are side-eyeing their vaults.

3. Macro meltdown = crypto safe haven?

With inflation stickier than a movie theater floor, BTC’s ‘uncorrelated asset’ pitch gains traction. Take that, boomer bonds.

4. Lightning Network goes mainstream

Suddenly Starbucks accepts satoshis. Scaling solutions are quietly turning BTC from ‘digital gold’ to ‘digital cash’—watch the narrative flip.

5. Shorts get rekt (again)

Leveraged bears became exit liquidity—a classic crypto tradition. Cue the margin call symphony.

6. The ‘number go up’ machine

Retail’s back, memecoins are pumping, and your Uber driver has TA charts open. Cycle rhymes harder than a Dr. Seuss book.

So… moon or correction? Yes. Meanwhile, Jamie Dimon just called BTC ‘worthless’ for the 427th time—right before JPMorgan quietly buys another mining facility.

Overall Accumulation

The following reasons will be combined into one category of “overall accumulation,” even though they may vary by investor type, different moments of purchases, etc. We will start with the ETFs as they’re the freshest. As reported yesterday, the spot Bitcoin ETFs in the US attracted more than $2.7 billion within the past five trading days alone.

In addition, they have seen only one day in net outflows since June 9. Both of these factors can drive the underlying asset’s price north, especially when investors spend more than $2 billion to accumulate ETF shares in two consecutive days (July 10 and 11).

Next, we will list the accumulation by large companies. Strategy, which admittedly failed to announce a purchase last week, has spent billions in the past few months to acquire more BTC. Its example has been followed to a smaller extent by other companies that now hold bitcoin as a reserve asset, such as Metaplanet, GameStop, and Semler Scientific.

Although these purchases might not impact the asset’s price immediately, their continuous efforts certainly play a role as they reduce the immediate selling pressure.

The accumulation trend expands well beyond institutions and large companies. Glassnode reported recently that smaller investors, categorized as shrimps, crabs, and fish (wallets holding less than 100 BTC), have been acquiring more than 19,000 BTC per month. In comparison, miner issuance stands at just 13,400 BTC per month.

Looking at accumulation by wallet size: Shrimps, Crabs, and Fish – wallets with Persistent net absorption across a wide base of holders is creating measurable supply-side tightening. pic.twitter.com/ajut5hlpqv

— glassnode (@glassnode) July 12, 2025

The aforementioned purchases from various types of investors, most of whom are transferring their BTC holdings out of exchanges, lead us to the next reason (yes, they are related). According to CryptoQuant, the amount of BTC stored on trading platforms has declined to the lowest level in a decade, another signal that investors are looking for the long term.

Macroeconomic Reasons

The reasons above paint a clear picture that investors are accumulating. Now, let’s get down to why they might be doing so.

Although TRUMP bombarded numerous nations and entire Unions with new sets of tariffs in the past few weeks, including on Saturday, the effect is nowhere near as devastating to BTC as it was back in April. At the time, bitcoin’s price collapsed to a five-month low, while now, the tariffs are somehow considered beneficial for the cryptocurrency.

As analysts from QCP put it:

“Will Trump delay implementation once again? That remains to be seen. But repeated cycles of tariff threats and postponements have contributed to positive uncertainty. Business sentiment and manufacturing indices have remained firmly in expansion territory.”

BREAKING: President Trump sends out more “tariff letters” with the following tariff rates now announced:

1. Brazil: 50%
2. Myanmar: 40%
3. Laos: 40%
4. Cambodia: 36%
5. Thailand: 36%
6. Bangladesh: 35%
7. Canada: 35%
8. Serbia: 35%
9. Indonesia: 32%
10. European Union: 30%
11.…

— The Kobeissi Letter (@KobeissiLetter) July 12, 2025

In the meantime, we will conclude our reasoning with the declining US dollar index. Experts have long predicted a massive parabolic MOVE for BTC once the greenback loses traction. This is because investors tend to jump into store-of-value assets, such as gold and bitcoin, in times when the dollar is weak.

Nicolai Sondergaard, Research Analyst at Nansen, told CryptoPotato that although he didn’t believe this rally was mostly driven by macro events, he thinks certain US policies have attributed to it.

“Recent U.S. policy developments such as fiscal expansion and expectations of further monetary easing have created a backdrop that is undeniably favorable for Bitcoin.”

Will BTC Keep Surging?

The big question now is whether these reasons will continue to push the cryptocurrency higher. In a memo to CryptoPotato, analysts from Bitfinex seemed optimistic.

“Unless ETF inflows collapse or macro takes a sharp turn, the structure remains intact. Bitcoin has flipped $111k–$114k into support, and as long as that holds, the trend is higher. For traders, the message is simple: respect the flows, watch for funding dislocations, and stay tactical around round-number resistance levels for Bitcoin.”

Nevertheless, they warned that “no rally goes up in a straight line.” The analysts added that BTC could be due for a correction first, as they have already started to “see some signs of temporary exhaustion.”

Nansen’s Sondergaard also weighed in on whether bitcoin has the strength to keep marching forward:

“Bitcoin recently broke through key liquidation levels and managed to hold above them, which I believe signaled there was more room for upside.

On the technical side, Bitcoin’s daily RSI has climbed above 70, which is typical in strong momentum phases. It’s not inherently bearish; RSI rising during price rallies is normal. However, if price continues to rise while RSI starts to diverge or decline, that could be an early signal of fading momentum and the potential for a correction.”