Bitcoin rises above $120k for the first time Is it time to lock in profits?

The value of bitcoin hit an all-time high on July 14. The growth was facilitated by the strong inflow of funds into bitcoin-ETFs, the purchase of cryptocurrencies by companies, as well as hopes for reform of the cryptocurrency market in the United States. 

Bitcoin on the night of July 14 reached the $120k mark for the first time in history and is now trading above $122k. It has risen 13% since the beginning of June: this is the third consecutive "green" monthly candle.

The rise of the largest cryptocurrency is being fueled by institutional demand led by BlackRock's bitcoin spot exchange-traded fund (ETF), whose assets under management hit a record $83 billion last week, notes Cointelegraph. BlackRock's bitcoin-ETF currently holds more than 700k bitcoins - that's 100k more than Strategy. According to data from CNBC, U.S. bitcoin-ETFs recorded their largest inflow since the beginning of the year on July 10 $1.18 billion.

"We believe bitcoin's rise is driven by long-term institutional buyers, and that will push it toward $125k within a month or two," said CNBC chief operating officer of cryptocurrency exchange BTSE Jeff May.

"Trump's trade disputes with the EU, Mexico and other trading partners could trigger a correction over the coming week, but institutional investors are likely already building this risk into their models and remain confident in bitcoin's continued growth,"

Analyst Axel Adler Jr. noted that activity on the bitcoin network is increasing with no signs of massive sales. "There are no signs of active [bitcoin] sales," Adler declared. - This reinforces the bullish bias from both a fundamental and technical perspective."

According to data from CNBC, interest in bitcoin is also fueled by the activity of financial divisions of large companies, which are increasing their purchases of the cryptocurrency. Additional impetus to the market may be given by legislative clarity: the U.S. Congress this week begins to consider a package of bills on cryptocurrencies, according to the channel.

This article was AI-translated and verified by a human editor