Bitcoin at $109,000: Is the final breakout here?
Bitcoin flirting with a new all-time high after a quick rally.
Bitcoin flirting with a new all-time high after a quick rally. At press time, the mother of all cryptos is around $109,000, up 2.4% in 24 hours.
What’s driving the rally? The catalysts lie outside the blockchain this time: macroeconomic optimism is running high. Yesterday, a new trade deal between the U.S. and Vietnam was announced, while the U.S. Senate backed tax cuts proposed by presidential candidate Donald Trump. The result? Global markets lit up, with the S&P 500 at a new all-time high.
But internal market dynamics are also kicking in. Analysts at Alphractal warned earlier this month of a possible "short squeeze," where a wave of liquidations on short positions rips the air. And that’s exactly what’s happening now.
In the last 24 hours, more than $250 million in short positions were liquidated, ammunition for the bulls to push toward the record high.
Structural and seasonal effects are helping, and the fundamentals remain robust. Several publicly traded companies have recently expanded their Bitcoin treasuries, while the global money supply M2 hit a new all-time high, traditionally a bullish signal for scarce assets like Bitcoin, the "digital gold".
On top of that, the seasonal boost is kicking in. Data from Coinglass shows July has historically been a strong month for BTC, with an average return of 8.2%. If this trend continues, Bitcoin could set a new peak within a few weeks.
Altcoins follow suit Also the altcoin market is making moves. Ethereum briefly breached $2,600, while XRP, Solana (SOL) and Dogecoin (DOGE) also logged gains between 3% and 7%.
