Bitcoin has reached a new all-time high of $123,165, surging more than 5% in 24 hours and pushing its market capitalization to $2.39 trillion.

According to CryptoSlate data, the milestone occurred in the early hours of July 14, marking the first time the flagship crypto has surpassed the $120,000 threshold.

This surge now places Bitcoin as the fifth-largest asset globally by market cap, above Amazon, according to data from Companies Market Cap.

Former Binance CEO Changpeng Zhao weighed in on the milestone, reflecting on how far Bitcoin has come. He noted that in 2017, a $1,000 all-time high felt monumental. Today’s figures, he suggested, may seem modest in hindsight a few years from now.

Meanwhile, technical analysts also view this Bitcoin breakout as significant momentum for the industry.

Coin Bureau co-founder Nic Puckrin noted that Bitcoin has broken above a seven-year trendline on its monthly chart for the first time. That level had previously acted as resistance in past bull markets, particularly since 2018.

What is driving Bitcoin’s price performance?

The price rally comes as the US prepares for what has been dubbed “Crypto Week,” beginning July 14.

Lawmakers are expected to hold key hearings and votes on several digital asset-related bills, including the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act.

Market observers view this wave of legislative activity as a possible turning point for regulatory clarity, which could unlock greater institutional participation.

Bitcoin has also seen strong inflows into U.S.-listed spot exchange-traded funds. According to SoSoValue, Bitcoin ETFs attracted over $2 billion last week alone. These figures underscore rising demand from institutional investors seeking direct exposure to Bitcoin.

Some firms, including Metaplanet, are following Strategy’s (formerly MicroStrategy) lead by adding Bitcoin to their Treasury reserves—a move that further solidifies the asset’s long-term appeal.

Over $700 million in liquidations

While bulls celebrate the breakout, short traders are feeling the heat.

According to CoinGlass, the market’s rapid movement triggered $730 million in liquidations across the crypto space.

Of that, nearly $444 million came from Bitcoin positions, with short trades accounting for $435 million of the losses. One trader lost close to $100 million on a single short bet.

Notably, on-chain data from Hyperliquid also shows that crypto trader Qwatio was fully liquidated from his short position of 1,743 BTC, equivalent to $211 million, within three hours of the market breakout.

Interestingly, when priced in euros, Bitcoin has still not surpassed its high posted in January.

Mentioned in this article

Shiba Inu’s

dollar-denominated price hit a one-month high, charting a bullish trend against Bitcoin. However, the outlook against its rival, dogecoin, doesn’t look as promising.

SHIB has gained 5.2% in the past 24 hours, reaching a high of $0.00001255 on Coinbase, the level last seen on June 12. As of writing, the cryptocurrency teased a breakout into bullish territory above the widely tracked 50-day simple moving average (SMA) at $0.00001242.

Key AI insights based on the 24-hour price action

• Institutional flows drove prices from $0.00001215 to a peak of $0.00001250 between 19:00 and 20:00 on July 9, with an exceptional institutional volume of 1.25 trillion tokens.
• Strong institutional resistance has been established around the $0.00001250 level, significantly exceeding the average daily institutional volume of 491 billion tokens.
• An additional 2.54% institutional gains occurred during the final trading hour from July 10, 03:56 to 04:55, advancing from $0.00001244 to $0.00001247.
• A session low of $0.00001238, established around 04:15, indicates what institutional traders view as strong technical support within the $0.00001238-$0.00001240 range.

SHIB/BTC breakout

The SHIB/BTC pair listed on CoinEx, which represents SHIB’s BTC-denominated price, rose 3.70% Wednesday (UTC), rising out of a triangular consolidation pattern identified by trendlines connecting June 24 and July 3 highs and June 22, June 27 and July 4 lows, according to data source TradingView.

The breakout follows a prolonged year-long downtrend and indicates that the bulls have emerged victorious, having successfully absorbed supply during the triangular consolidation.

The pair, therefore, could continue to gain ground in the short term, supported by a positive MACD histogram, which points to a strengthening of upward momentum. The swing low from May 7, represented by the horizontal line on the chart below, could offer resistance on the way higher.

SHIB/DOGE breaks down

SHIB could underperform DOGE in the coming days, as the Binance-listed SHIB/BTC pair has penetrated a trendline support, marking the end of the recovery rally from May lows.

Furthermore, the Guppy multiple moving average indicator appears poised to cross bearish, indicating a negative shift in momentum. The bear cross occurs when the band of short-term exponential moving averages (EMAs) moves below the long-term EMAs.

The pair needs to top the June 24 high of 0.0000719 to negate the bearish outlook.

(Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.)

This upward movement has pushed the asset beyond the psychological threshold of $110,000, reinforcing optimism in its medium-term trajectory. However, analysts are monitoring underlying market data that may signal emerging risks beneath the surface of the rally.

Bitcoin Exchange Inflows and Leverage Ratios Reflect Growing Caution

CryptoQuant contributor Amr Taha recently published a detailed analysis highlighting key metrics from Binance, including net flows, open interest, and leverage levels. These metrics, when taken together, reveal a familiar setup reminiscent of December 2024, a period that preceded short-term corrections.

While Bitcoin’s price action has remained positive, the presence of high exchange inflows and speculative positioning could indicate that some investors are preparing for profit-taking. According to Taha, Binance has observed a notable increase in inflows, with approximately 3,000 BTC and 60,000 ETH entering the exchange as Bitcoin broke its all-time high.

This shift from net outflows to inflows suggests that investors may be transferring assets to trading platforms with the intent to sell or adjust their positions. Historically, large net inflows during price peaks have been linked to increased selling activity, particularly when market participants aim to secure gains after extended uptrends.

Taha also noted that open interest (OI) on Binance has climbed back above $12 billion levels last seen in December 2024. Open interest refers to the total value of outstanding futures contracts and is often viewed as an indicator of speculative engagement in the market.

While rising OI can support upward continuation during bullish phases, it may also increase the risk of volatility if not supported by fresh spot market demand. Compounding this, Binance’s estimated leverage ratio has returned to 0.20, mirroring previous highs and suggesting that many traders are utilizing significant leverage. Elevated leverage levels tend to heighten sensitivity to price fluctuations and can amplify liquidations during abrupt corrections.

Are Market Conditions Echoing December’s Setup?

Taha concluded his analysis, revealing that while none of these indicators are inherently bearish on their own, their simultaneous occurrence around a new all-time high could point toward short-term instability. In previous cycles, such combinations of high leverage, rising OI, and exchange inflows have been associated with increased profit-taking and localized pullbacks.

Taha wrote:

These are not inherently bearish signals in isolation. However, when combined, they historically correlate with profit-taking behavior and often precede volatility spikes or corrections. Traders and investors should remain alert: these same conditions marked the beginning of localized tops in late 2024, especially after periods of aggressive upside.

Featured image created with DALL-E, Chart from TradingView