Bitcoin Hits $112K Amid Dollar Decline and ETF Inflows
BTC hits record high amid institutional inflows and dollar collapse, signaling the start of a new crypto bull cycle.
Bitcoin has shattered its previous record, soaring to an all-time high of $112,000, as macroeconomic tailwinds and a weakening U.S. dollar fuel renewed investor enthusiasm across both institutional and retail sectors.
Institutional Inflows Drive Momentum
The new milestone surpasses Bitcoin’s prior peak from May 22, 2025, and underscores growing demand among institutional investors. Recent data from SoSoValue reports that U.S. spot Bitcoin ETFs recorded $80.08 million in net inflows on July 8 alone, pushing total cumulative inflows to $49.94 billion. These funds now hold $136.75 billion in assets, equivalent to 6.33% of Bitcoin’s total market capitalization.
CoinShares’ recent institutional flow reports confirm this growing appetite, citing steady accumulation among asset managers seeking alternatives to traditional hedges amid mounting macroeconomic uncertainty.
Adding to the bullish narrative, Japanese energy consulting firm Remixpoint invested $215 million into Bitcoin within a 48-hour window. Simultaneously, Nasdaq-listed Murano Global announced $500 million in equity agreements allocated to BTC, marking one of the largest single-entity corporate commitments in 2025.
Earlier this week, institutional players such as Metaplanet and Blockchain Group also expanded their Bitcoin treasuries, reinforcing the ongoing accumulation trend across corporate balance sheets.
The U.S. Dollar’s Breakdown Fuels Risk-On Behavior
A significant driver behind Bitcoin’s rally is the sharp decline of the U.S. dollar, which has weakened dramatically since the start of the year. The Dollar Index (DXY) is down 10.1% year-to-date, its worst performance since 1973.
The decline has been accelerated by President Trump’s proposal for a 300-basis-point interest rate cut—three times larger than any in modern U.S. financial history. According to macro analysts at The Kobeissi Letter, such an aggressive move, especially during a period of 3.8% GDP growth, would act as an emergency-level stimulus that could send inflation soaring above 5% while further devaluing the dollar by another 10%. Analysts described the proposal as an unprecedented form of monetary expansion, noting that such an aggressive cut would typically be reserved for wartime or severe economic contraction.
The proposed cuts are projected to save the U.S. government $870 billion annually in interest payments, but they also raise alarms about long-term inflation and purchasing power erosion. For many investors, Bitcoin represents a viable hedge against such debasement, particularly as traditional safe havens like gold have already posted a 40% gain over the past 12 months, according to the report.
Adding further context, asset managers’ speculative short positions on the U.S. dollar have fallen to their lowest levels since mid-2021, reflecting growing market skepticism toward the greenback. Meanwhile, the DXY is trading 6.5 points below its 200-day moving average, the widest margin in over two decades—another indicator of deteriorating dollar strength.
Bitcoin’s Technical Structure Signals Continuation
From a technical standpoint, Bitcoin’s latest breakout is not just symbolic—it’s structurally significant. On the 4-hour chart, BTC successfully cleared resistance at $108,532, $109,745, and $110,773, pushing decisively into uncharted territory.
The breakout above the critical $111,586 level confirms sustained bullish momentum. With former resistance now acting as support, analysts identify the $100,375 zone as the key level that must hold to avoid a false breakout.
The weekly chart reveals an inverse head and shoulders formation, a powerful bullish pattern suggesting long-term accumulation. The neckline breakout from this structure implies a measured move target near $132,500, supported by higher lows and strengthening momentum.
- Immediate support: $109,000–$110,000
- Fair value gap: $104,000
- Demand zone: $102,000
- Primary target: $120,000
- Extended target: $131,000–$134,000
Perpetual futures data reinforces the bullish case, with range breakouts above $112,000 and firm support forming around $107,249. These metrics reflect growing confidence in the sustainability of the rally, especially as broader capital inflows continue.
Bitcoin as the Preferred Hedge
Bitcoin’s tight correlation with a weakening dollar is increasingly evident. As fiat currencies face mounting pressure from aggressive monetary policy, corporate treasuries and investment firms are rotating into decentralized stores of value.
This macro environment echoes previous cycles where capital flight from the dollar benefited alternative assets, but this time, Bitcoin is leading the charge, not just participating. Unlike gold or oil, BTC combines inflation protection with digital utility and liquidity advantages.
Moreover, the regulatory landscape—bolstered by the approval and success of spot Bitcoin ETFs—has made it easier for institutions to gain exposure without direct custody concerns.
A New Phase for Bitcoin and Global Finance
The convergence of aggressive U.S. monetary policy, institutional accumulation, and technical breakout confirmation has created a rare alignment of bullish catalysts. This combination may usher in a new phase in Bitcoin’s global adoption, not just as a speculative asset but as a strategic macroeconomic hedge.
If the current trajectory holds, and institutional momentum continues, Bitcoin could soon reach its next psychological threshold of $120,000—and possibly surge beyond $130,000 in the months ahead. As traditional financial systems face mounting instability, Bitcoin’s role as a digital alternative appears stronger than ever.
