Bitcoin ATH at $123,000: Is This the Start of a New Financial Revolution?

In July 2025, both Bitcoin and major U.S. stocks like the S&P 500 and NASDAQ hit new all-time highs. Bitcoin surged to around $123,000—a new historic milestone for crypto investors. Here's a simple breakdown of what's behind this market surge.

Bitcoin hit 123k on July 14, 2025 - Source: Bitget

Why Are Bitcoin Prices Rising?

1. Short Squeeze and Liquidations

A "short squeeze" happens when many traders betting against Bitcoin are forced to buy it back quickly, pushing the price up fast. On July 10, over 200,000 traders were liquidated in just 24 hours, losing about $1.06 billion; while pushing Bitcoin price surged around $116K only within a few hours.

2. Favorable U.S. Regulatory Developments

President Donald Trump’s stance as a pro-crypto leader has also played a significant role. Trump’s return to the White House marks a significant change not only in U.S. politics but in the global financial and cryptocurrency landscapes.

Currently, Trump has actively urged the Federal Reserve to lower interest rates, which increases the money supply and liquidity in the economy. Lower interest rates tend to make borrowing cheaper, encouraging investment in various assets, including cryptocurrencies like Bitcoin.

But, can the interest rate really affect Bitcoin prices? Interestingly, despite the Federal Reserve raising interest rates from March 2022 onwards—which initially depressed Bitcoin's price at around $40,000—Bitcoin has continued to set new highs. Since 2022, Bitcoin has increased over 200%, climbing from $40,000 to $123,000—showing it’s becoming a popular hedge against inflation.

Crypto-Friendly Tax Changes: In April 2025, Trump repealed a controversial IRS rule targeting DeFi platforms. This move reduces regulatory uncertainty, encouraging innovation and participation in decentralized finance.

America's first-ever "Crypto Week": The U.S. House of Representatives announced that July 14-18, 2025, will be America's first-ever "Crypto Week." Three major bills could finally bring the regulatory clarity the crypto industry has been waiting for.

● CLARITY Act: Seeks to define the regulatory framework for cryptocurrencies.

● GENIUS Act: Supports innovation and clarifies the status of digital assets.

● Anti-CBDC Surveillance State Act: Addresses concerns over central bank digital currencies and potential privacy issues.

These legislative efforts signal ongoing government engagement to create a more secure and transparent environment for crypto investments.

Related article: U.S. Crypto Week: Everything You Need to Know

3. Rising Institutional Adoption and Bitcoin ETF Inflow

Since regulators approved spot Bitcoin ETFs in January 2024, big names like BlackRock, Fidelity, Bitwise launched their own ETFs, boosting legitimacy, and the institutional money has flooded in. The Blackrock's young IBIT alone has surged to a value of $80 billion (700,000 BTC) now, and is on track to surpass $100 billion well before its second birthday, highlighting the quickening rate of institutional acceptance in the crypto industry. (It took more than 15 years for GLD, the biggest gold ETF, to achieve the same feat).

Data from Farside shows U.S. spot Bitcoin ETFs saw $2.2 billion in net inflows on July 10–11, 2025, fueling this time's surge.

Source: Farside

Corporate Bitcoin Purchases Surge: According to Bitwise, companies bought 159,107 Bitcoins in Q2 2025, worth $17 billion—a 60% increase from the previous quarter.

Companies are buying bitcoin in Q2 2025 - Source: Bitwise

From July 7–12, 2025 alone, 35 companies globally, like Strategy, MARA Holdings, Metaplanet, LQWD Technologies, Twenty One, Riot Platforms, Thumzup Media, Sequans Communications, KULR, DDC Enterprise, K Wave Media... announced purchases totaling 4,700 BTC, setting a new record.

Summary

The current rally in Bitcoin and U.S. Stock markets are driven by a mix of technical factors, investor sentiment, favorable policies, an increase in spot Bitcoin ETFs and institutional adoption. As regulations become clearer and corporate backing strengthens, Bitcoin appears positioned for continued growth toward new heights. Stay tuned—the (short-term) volatility is expected, but the (long-term) trend is up! But, remember, since the market can be extremely volatile, always be careful, always do your own research before investing.

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Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.