Bitcoin reached an unprecedented peak of $122,600 on July 14, 2025, capturing the attention of market participants and observers. This significant surge occurred rapidly and without notable setbacks, spurring analysts and investors to delve into the underlying reasons fueling this momentum and to predict Bitcoin’s possible future direction.
How Does Demand Outpace Supply?
The astonishing demand-supply gap is prominently illustrated by the fact that while only 450 BTC are mined daily, spot ETFs are purchasing an enormous 10,000 BTC each day. Bitwise Investment’s Matt Hougan identifies this 20-fold disparity as a core driver of Bitcoin’s rapid price escalation. The substantial volume entering institutional wallets significantly inhibits market liquidity.
At the forefront of this surge is BlackRock’s IBIT ETF. Within 200 trading days, the IBIT ETF secured $84 billion in assets, a feat that contrasts sharply with the 15 years it took the gold-based GLD ETF to achieve the same milestone. Holding over 700,000 BTC, IBIT maintains a commanding lead over its nearest rival by 100,000 BTC.
Strong institutional buying has also sparked a wave of individual investors entering the scene. With exchanges struggling to meet rising demand against a backdrop of diminishing sell orders, Bitcoin prices are climbing to new records in mere moments.
What Role Does US Policy Play?
Despite elevated interest rates, the US dollar has seen an 11% drop over six months. In a corresponding trend, Bitcoin has rallied by $10,000. Amplifying investor uncertainty, the US House passed a massive fiscal spending bill on July 3, prompting many to turn to Bitcoin as their preferred hedge against inflation.
Geopolitical factors, such as President Donald Trump’s implementation of a 50% tariff on copper and additional sanctions against Brazil, are steering investors towards Bitcoin due to increased volatility in traditional markets.
● Geoff Kendrick at Standard Chartered suggests Bitcoin may climb to $135,000 by the third quarter’s close and could touch $200,000 by the end of the year.
● A continuous imbalance in supply and demand, as noted by Hougan, further supports the likelihood of reaching the $200,000 mark soon.
Geoff Kendrick’s projection aligns with Hougan’s view, indicating sustained demand could propel Bitcoin to $200,000 by year-end. The market’s unprecedented dynamics present both opportunities and challenges, as investors and institutions navigate these volatile yet potentially rewarding waters.
