Beyond $120K: Bitcoin’s Continued Ascent and the Pushing Factors

Bitcoin rebounds strongly, consolidates gains, and faces shifting market dynamics amidst macroeconomic headwinds.

Contents

Beyond $120K: Bitcoin’s Continued Ascent and the Pushing Factors Balanced Move to the Top $120K Zone Macro Drivers: Weak Dollar, Rising Deficits Fuel BTC Appreciating Altcoins as Dominance wanes Beware: Debt and Inflation Data Impact Trajectory Category: Market Data

Bitcoin price action is dynamic, with the charts showing potential for further upside. The direction of #Bitcoin and broader markets will be tested by the upcoming US CPI data.

Balanced Move to the Top $120K Zone

After two months of consolidation, Bitcoin (BTC) moved decisively higher during the second week of July, pushing weekly gains to approximately $10,000. This placed the major cryptocurrency firmly into the $120,000 price zone for the first time since late May.

The all-time high stands at $122,600. Traders are now looking for resistance near $107,700, then $122,600, and potentially extending to $145,000 based on market forecasts.

Macro Drivers: Weak Dollar, Rising Deficits Fuel BTC

Economists suggest the significant gains are partly a result of the declining US dollar (-11% over six months). However, a more profound factor appears to be the escalating US federal deficit, currently at a record high of over $316 billion in May, driving investors towards perceived “safe havens,” albeit unconventional ones.

“This is not a ‘normal.’ We have reached a point where Bitcoin is moving in a literal STRAIGHT-LINE higher.”

— The Kobeissi Letter (@KobeissiLetter), July 14, 2025

“Rates are rising, the USD is down — and crypto is up +$1 TRILLION in 3 months.”

— The Kobeissi Letter (@KobeissiLetter), July 14, 2025

This analysis points to global factors, including unprecedented levels of M2 money supply ($55.48T), which may complicate the macro situation and drive risk assets like Bitcoin.

Appreciating Altcoins as Dominance wanes

While Bitcoin has dominated market cap (currently hovering near 65%), its relative dominance peaked at around 66% in early June. While altcoins haven’t yet reversed Bitcoin’s strong run in percentage terms month-to-date, the waning dominance might be setting the stage for alternative narratives and price action.

Important: This analysis does not constitute investment advice.

Beware: Debt and Inflation Data Impact Trajectory

The upcoming US Consumer Price Index (CPI) and Producer Price Index (PPI) prints face intense scrutiny. Amid already record government debt, the CPI data could either prop up or call into question the drive for higher interest rates, a critical pivot for the Federal Reserve and broader financial markets.

Bitcoin’s strengthening position against a softer US dollar adds another dimension to the ongoing economic debate. The full integration of these macroeconomic shifts into market trajectories remains an open question.