Bitcoin breaches $110,000 as hunt for new ATH rages on
On Wednesday, July 3, Bitcoin reached its highest price level in three weeks and convincingly broke through the $110,000 barrier.
On Wednesday, July 3, Bitcoin hit its highest price level in three weeks and convincingly broke through the $110,000 mark. That puts the previous all-time high of $112,000 within less than two percent. And that's just the beginning, analysts suggest.
Macro economy pushes Bitcoin forward
What's behind this price rally?
According to today’s market update, it’s mainly macroeconomic impulses giving the crypto market wings. Two catalysts stand out:
– A new trade agreement between Vietnam and the United States, improving the economic outlook – The Senate's approval of Donald Trump’s tax cuts, which boosts the investment climate in the U.S.
Short squeeze in sight?
Breaking above $110,000 could be the starting gun for an explosive rise toward $120,000, especially with upcoming short liquidations. “If BTC breaks above $110,000, aggressive short-position liquidations are to be expected,” write analysts at Alphractal.
CryptoQuant also confirms the optimistic sentiment. Since April, selling pressure from American whales and institutional investors has been gradually easing. Even more: these players have resumed active Bitcoin accumulation.
Seasonal effects push the price further
Another factor in Bitcoin's favor: the calendar. Historically, July is a strong month for BTC. On average, the crypto token delivers about 8.2% return during this period. If this pattern holds, a convincing rise toward and possibly beyond the all-time high is within reach.
