Bitcoin Price Reaches New High; Analysts Consider $120K Target

In Brief

• Bitcoin surpassed $118,000, recording a 6.2% daily increase on Friday morning and setting a new all-time high. Trading volume exceeded $81 billion.
• The recent price movement is attributed to increased institutional participation, which some market observers suggest may contribute to long-term credibility for the cryptocurrency sector.
• Exchange flows have declined to a three-year low of $2.39 million. Some analysts forecast that Bitcoin could reach $120,000 by the end of the month.

Bitcoin Price Movement

Bitcoin continued to rise after reaching a new all-time high. At the time of reporting, Bitcoin exceeded $118,000, reflecting a 6.2% gain over the previous 24 hours, according to CoinGecko data.

Over $81 billion in Bitcoin was traded during the past 24 hours. Such trading volumes were last observed in January and late February, when Bitcoin experienced significant price changes.

Kushal Manupati, Binance's regional growth and operations lead in South Asia, noted that the current rally appears to be primarily driven by institutional investors rather than retail traders.

"Bitcoin approaching the $120,000 mark and reaching an all-time high at $118,000 is a significant development for the virtual digital assets industry," Manupati stated. "Institutions are participating at scale, contributing liquidity and potentially enhancing the sector's credibility."

Broader Market Context

Analysts at Singapore-based trading firm QCP Capital observed that recent cycles of tariff threats and postponements have not significantly affected business sentiment.

There are also indicators from commodities markets. According to QCP Capital analysts:

"Copper prices, often considered an indicator of macroeconomic health, have increased alongside industrial demand and improving liquidity conditions."

Copper Futures have risen by 8.42% over the past five days, based on TradingView data.

Exchange Flows and Analyst Commentary

With Bitcoin reaching new price levels, market participants are assessing the duration of the current trend. Exchange flows, representing the amount of Bitcoin transferred to exchanges for trading, have continued to decrease since October.

According to CryptoQuant, exchange flows have now declined to $2.39 million, the lowest level in three years.

Ryan Lee, chief analyst at Bitget Research, cited strong stock market performance, stable money supply, and recent legislative developments as factors supporting positive sentiment for Bitcoin.

"Given these conditions, Bitcoin may surpass its previous high in July, with potential to reach $120,000 by the end of the month," Lee said.