Mike Smith
21 hours ago
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Bitcoin soared above $122,600, raising its capitalization to $2.4 trillion. The digital asset surpassed Amazon and cemented itself in the top five global assets, overtaking silver and Alphabet. The week of gains added nearly 13%, showing how soaring demand is reshaping the ranks. Investors saw this as the asset's eventual exit from the niche category.
Record inflows into spot funds were a key driver. On July 10 and 11, U.S. products took in $1.17 billion and $1.03 billion; it was the first time since January 2024 that two in a row managed to exceed a billion. BlackRock IBIT already manages more than $80 billion. The ETF format has given bitcoin institutional accountability and lowered market spreads, facilitating large trades. The growth in AUM comes amid historically low supply on exchanges, amplifying the effect of every dollar of inflows.
Crypto Week's package of CLARITY, GENIUS and Anti-CBDC Surveillance bills laid down clear standards for reporting and investor protection. The lifting of the regulatory fog opened the way for pension and insurance funds, accelerating the growth of mandates distributed to the market. Following the U.S., financial centers in Asia are announcing their own rules.
A weakening dollar, rising inflation expectations and near halving are boosting interest in the fixed supply asset. Bitcoin's correlation with the Nasdaq and S&P 500 has climbed to 0.87, turning the coin into a technology proxy with limited turnover and asymmetric returns. Institutionalizers are using it instead of bonds in an era of low coupons.
In 15 years, the price has gone from $0.10 to $122,000, yielding over 1,219,999%. A hard limit of 21 million coins makes bitcoin the digital equivalent of a rare metal. Every four years, issuance declines, creating built-in deflation. The asset is increasingly seen as an alternative to gold and insurance against devaluation.
By July, some 265 companies held 853,000 BTC, i.e. 4% of supply, while funds held 1.4 million BTC (6.6%). In total, corporate trijeris and ETFs control more than a tenth of the issuance, gradually reducing free liquidity. Semler Scientific, for example, acquired 4,450 BTC in a matter of months. Some of these coins are stored on cold wallets and practically do not participate in circulation.
Apple's $3.1 trillion level needs a rate of $142,000, Microsoft's $3.6 trillion needs about $167,000. Standard Chartered is expecting $135,000 by the third quarter, SkyBridge $180,000-200,000. Maintaining the trend depends on fund inflows, rates and a robust regulatory environment. Volatility still exceeds 5% per session, which requires thoughtful risk management.
Bitcoin's new status is forcing a reassessment of the structure of portfolios. It is being placed alongside equities, bonds and tokenized instruments, and its scarcity nature is pushing for innovative liquidity strategies. The upcoming halving in 2028 strengthens demand and develops the options market, creating the basis for complex income schemes.
