Bitcoin breaks through $118,000 hitting a new high, multiple factors resonate to ignite the bull run.

The price of Bitcoin broke through the $118,400 mark on the afternoon of July 11, setting a new historical high and once again sparking market attention on its scarcity and hedging function. This round of rise is not driven by a single factor, but is the result of multiple factors working together, including increased institutional fund inflows, a warming ETF market, changes in U.S. macro policies, and market expectations.

Bitcoin has not only successfully broken through the key resistance level of $112,000, but short-term technical analysis also indicates that it still has momentum to continue rising. As the supply of the dollar continues to expand, some industry insiders have come forward to reassure those investors who missed this market movement, reminding them that the total issuance of Bitcoin is limited, and there will still be opportunities to buy during pullbacks.

These remarks are not just simple encouragement, but also reiterate the core logic of Bitcoin as a deflationary asset. While global monetary supply is expanding and the depreciation of fiat currency has become the norm, Bitcoin still maintains a fixed supply cap of 21 million coins. It is worth noting that over 95% of Bitcoin has already been mined. As miners' earnings increasingly rely on transaction fees and scaling solutions like the Lightning Network are gradually implemented, the overall supply-demand structure of this cryptocurrency is becoming increasingly tight.

From a technical analysis perspective, some analysts point out that the Bitcoin daily chart is forming a "cup and handle" pattern. If it can solidly stand above $112,000, it is expected to challenge $230,000 in the coming months. If this major upward trend comes true, it will undoubtedly trigger follow for other innovative applications within the Bitcoin ecosystem and attract more speculative funds to enter the market.

Against the backdrop of rapidly changing global macro environments, the market's demand for concepts such as "de-dollarization", "digital gold", and "limited supply" is growing increasingly. As the U.S. government considers restarting tariff policies, the Federal Reserve's meeting minutes signal interest rate cuts, and institutional investors begin to position for a new round of long-term investments, the price of Bitcoin and the capital flow within its ecosystem are showing evident interconnected effects. This not only marks a phase peak in asset prices but also signifies an important turning point towards the maturation of the entire cryptocurrency market.

The impact of Bitcoin once again reaching a historical high not only reflects the widespread recognition of its anti-inflation capacity, verifiability, and scarcity, but also provides a broader development space for innovative applications built around this core asset. Whether it is short-term technical indicators or long-term supply and demand structures, both indicate that we are not at the end, but at the beginning of a new cycle. For investors who have missed this rise, it is better to wait for the next opportunity than to regret, because true value lies not in the price, but in a profound understanding of the logic of supply and the evolution of the market.

It is important to note that cryptocurrency investments carry a high risk, with significant price fluctuations that may result in financial losses. This article is for reference only and does not constitute investment advice. Investors should conduct their own research and make cautious decisions.