Background Overview

In mid-July 2025, the U.S. Congress will launch what’s being dubbed “Crypto Week,” reviewing major crypto-focused bills including the CLARITY Act and GENIUS Act to provide a clearer regulatory framework for digital assets. This has fueled expectations that favorable shifts in U.S. and European regulation will act as a tailwind. It has sparked a rapid surge in Bitcoin prices.

July 14: Breaking Through Historic Highs

Chart: https://www.gate.com/trade/BTC_USDT

On July 14, Bitcoin surged past $120,000, hitting a record $123,153.22. Bloomberg data showed an intraday spike to roughly $123,205, while CoinMarketCap reported a daily high of $123,091.61.

“Crypto Week” and Legislative Momentum

U.S. lawmakers are actively advancing three major pieces of crypto legislation, aiming to anchor market expectations. President Trump has voiced clear support for a lighter-touch approach to digital asset oversight and has signed a strategic digital asset reserve plan that officially designates Bitcoin as a national reserve asset.

Institutional Activity and ETF Inflows

Institutional investors and large corporations are increasing their Bitcoin acquisitions. For instance, last week a representative company added 4,225 BTC (about $470 million) to its balance sheet, increasing its BTC holdings. Spot Bitcoin ETFs saw single-day net inflows exceeding $1 billion from Thursday to Friday, with weekly inflows rising to approximately $1.5 billion. Leading issuers like BlackRock now manage nearly $90 billion in assets under management (AUM) in Bitcoin ETFs.

Market Outlook and Risk Warning

Institutional forecasts remain optimistic. The Bitwise CEO projects Bitcoin could reach $200,000 by year-end. Citi estimates a base case of $135,000, with a bull-case scenario of $199,000. However, experts are warning of possible bubble risks, with the rally showing signs of overheating and technical indicators pointing to overbought conditions and heightened market volatility.

Tips for New Investors

• Practice sound risk management: Build your positions gradually to avoid purchasing at peak prices;
• Closely track legislative changes and ETF flows: Regulatory developments and fund movements are market barometers;
• Set clear take-profit and stop-loss levels: For example, consider a 20% take-profit and a 10% stop-loss to lock in gains and protect your capital;
• Maintain readiness for increased volatility during bull runs, and adjust positions as needed to manage risk.

Summary

Bitcoin’s breakout above $120,000 on July 14 to a record high was driven by both institutional demand and policy momentum. While the mid-term outlook remains positive, market volatility and regulatory risk call for caution. For novice investors, it is important to stay level-headed, build a clear strategy and approach the market rationally.