Bitcoin (BTC) has reached a remarkable new all-time high of $111,999, outpacing its prior record set on May 22, 2025.
This achievement signals the onset of what many market analysts are dubbing a new cryptocurrency bull market, driven by increasing institutional interest and a resurgence in retail engagement.
Recent reports from CoinShares indicate a steady rise in institutional demand for cryptocurrency assets.
As of July 8, US Spot Bitcoin ETFs recorded daily net inflows of $80.08 million, contributing to an impressive cumulative total of $49.94 billion. Total net assets for these ETFs now stand at $136.75 billion, constituting 6.33% of Bitcoin’s overall market capitalization, as reported by SoSoValue.
Source: SoSoValue
This surge in Bitcoin’s value comes amid significant weakening of the US dollar, which has seen the Dollar Index decline by 10.1% year-to-date—its worst performance since 1973.
Contributing to this situation is President Trump’s proposal for a historic interest rate cut of 300 basis points, a move that is three times larger than any previous cut, adding further pressure on the dollar while steering institutional investments toward Bitcoin as a safeguard against currency depreciation.
First, President Trump mentions that higher rates are costing the US more money on interest expense.
At a high level, this is true.
Annual interest expense on US debt has reached $1.2 TRILLION over the last 12 months.
The US is now paying $3.3 BILLION in interest per day. pic.twitter.com/22N9M2PdFX
— The Kobeissi Letter (@KobeissiLetter) July 9, 2025
The decline of the dollar has set the stage for favorable conditions for risk assets, with asset managers holding speculative short positions on the dollar at their lowest levels since mid-2021.
Currently, the dollar index is trading 6.5 points below its 200-day moving average, marking the largest deviation in 21 years and providing unprecedented support for Bitcoin and other alternative investments.
Dollar Weakness Fuels Bitcoin Surge
A detailed analysis from The Kobeissi Letter suggests that Trump’s proposed 300-basis-point interest rate cut could initiate a significant monetary expansion, potentially resulting in $870 billion in annual savings on debt servicing while unsettling financial markets.
The average rate on US debt is ~3.3%.
If the rate on ALL $29B in public debt was cut by 300 bps, the US could save $290B × 3 = $870B/year.
However, refinancing all of this debt immediately would be impossible.
Realistically, 20% could be refinanced in year 1 to save ~$174B. pic.twitter.com/V3lbzoIHen
— The Kobeissi Letter (@KobeissiLetter) July 9, 2025
Should such an emergency-level intervention occur in an expanding economy, currently growing at an annual rate of 3.8%, it may push inflation above 5% while further devaluing the dollar by an additional 10%.
Historical precedents advise caution against such bold monetary strategies, particularly since the Federal Reserve has refrained from implementing cuts exceeding 75 basis points outside recessionary contexts. The most significant cut thus far—100 basis points—was executed in March 2020, amidst the economic downturn prompted by COVID-19.
Source: The Kobeissi Letter
According to Kobeissi Letter’s findings, potential interest rate cuts could result in rapid asset inflation, with projections for the S&P 500 exceeding 7,000, oil prices climbing above $80 per barrel, and gold nearing $5,000 per ounce.
Additionally, housing prices might experience a rise of 25%, even as mortgage rates drop from 7% to 4%, which would counteract any gained affordability.
What about housing?
Mortgage rates would fall from ~7% to ~4% into a market that has already seen prices rise +50% since 2020.
We believe home prices would rise another 25%+.
While mortgage rates would drop, the surge in prices would undo any affordability improvements. pic.twitter.com/SX4CZ8tdEr
— The Kobeissi Letter (@KobeissiLetter) July 9, 2025
The weakening of the dollar has led to a substantial movement of capital into alternative assets, with gold appreciating by 40% over the past 12 months and 80% over the past five years.
The close relationship between Bitcoin and the dollar’s decline underscores the cryptocurrency’s position as a primary beneficiary of ongoing monetary debasement and currency erosion.
In fact, just recently, the Japanese energy consulting firm Remixpoint raised $215 million exclusively for Bitcoin investments, while Nasdaq-listed Murano Global announced a commitment of $500 million towards BTC acquisitions. This trend signals a corporate treasury revolution as businesses increasingly seek protection against currency devaluation and inflationary pressures.
Bitcoin Technical Insights Highlight Breakout Pattern
In technical analysis, Bitcoin’s 4-hour chart has showcased a decisive breakout above $111,586, surpassing multiple resistance points at $108,532, $109,745, and $110,773, and establishing new peaks.
Source: @CryptoGodJohn on X
This clear break beyond the previous all-time high range of approximately $109,000 – $110,000 could potentially transform these levels into supportive structures.
The technical layout is unprecedented, with the next significant resistance anticipated around $111,930, based on psychological benchmarks.
Maintaining bullish momentum hinges on the critical support line at $100,375, as falling below this threshold could indicate a false breakout.
Moreover, weekly chart evaluations reveal a substantial inverse head and shoulders pattern with a neckline breakout, suggesting potential target movements toward $132,500.
Source: @cryptoWZRD_ on X
This formation reflects institutional accumulation during months of consolidation, with higher lows forming in the right shoulder denoting enhanced buying pressure and momentum divergence.
Perpetual futures charts affirm the range breakout above $112,000, further legitimizing bullish momentum with support seen at equal lows around $107,249.
$BTC
Plan for me is straight forward here.
Either:
A) We’re about to see a true breakout. In which case we see acceptance above this range (daily close above, time and space, any re-tests are support, etc). In which case I will look to trade with the trend, with targets… pic.twitter.com/8Cu5R05we9
— CJ (@CJ900X) July 9, 2025
The daily fair value gap at $104,000 and the demand zone at $102,000 are crucial areas for potential retests, although the strength of the breakout suggests continued upward progression.
Given the clear nature of the breakout above $112,000 alongside a new all-time high, Bitcoin is poised for a prolonged bull market trajectory.
Initial target levels are set at $120,000, followed by projections based on the inverse head and shoulders pattern reaching between $131,000 and $134,000, with any pullbacks anticipated around $109,000 to $110,000.
The post Breaking: Bitcoin Hits New All-Time High as New Bull Market Begins appeared first on Finance Newso.
