Bitcoin’s surge to $124,000 marks not just a new all-time high but is being driven by institutional participation, favorable macroeconomic conditions, structural supply constraints, and strengthening market microstructure, signaling a sustained structural repricing rather than a speculative bubble. There are a number of factors responsible for this traction. One of the most influential forces has been the adoption of spot Bitcoin ETFs, particularly in the U.S. and Asia-Pacific. The “BlackRock Effect” is now in full force; their flagship ETF has been recording consistent daily Bitcoin purchases, often running into thousands of coins, directly tightening supply on exchanges.
Reason for the surge
Few experts feel that the reason behind this surge is also due to the macro conditions that are providing strong tailwinds. “Softening real yields and an anticipated global rate-cut cycle in 2025 are driving investors toward non-yielding hard assets with limited supply. Bitcoin, often dubbed as “digital gold,” benefits from its dual narrative as both a hedge against monetary debasement and a high-beta growth alternative in a low-yield world. Historically, such macro backdrops have supported multi-quarter advances in scarce assets,” remarked Parth Srivastava, Head of Quant at 9Point Capital’s Research Team.
Though not welcome in India, a few experts believe that macro conditions have provided an equally strong tailwind for Bitcoin. With real yields softening and central banks signaling potential rate cuts in 2025, non-yielding hard assets are regaining favor as both a store of value and a hedge against currency debasement. Bitcoin, often referred to as “digital gold,” is benefiting from a dual narrative: an inflation hedge and a growth alternative in a low-yield environment.
Experts feel that the reason for Bitcoin hitting a new all-time high above $124,500 is driven by strong institutional inflows and positive macro signals. “U.S. July CPI at 2.7 percent YoY boosts expectations of September Fed rate cuts, while Trump’s 401(k) crypto move may channel mainstream retirement funds. A major portion of Bitcoin supply is now held by corporate and sovereign treasuries, with universities like Harvard and Brown increasing ETF exposure. More than $3.5 BTC ETF inflows last month indicate long-term conviction. Near-term consolidation between $120K–$125K is possible, but Bitcoin’s limited supply and institutional backing support a continued uptrend,” pointed out Pankaj Balani, Co-Founder & CEO, Delta Exchange.
Strong support at $120,500
Experts further point out that on the technical front, Bitcoin has formed a strong support at the $120,500 zone. If BTC manages to break through the resistance at $125,500, it could trigger short liquidations worth $2 billion, further adding buying pressure. This momentum could push Bitcoin towards $140,000. “Bitcoin’s ongoing rally, hitting a new high of $124,400, is largely driven by macroeconomic and institutional confidence in the asset. With the US CPI data in July coming in cooler than expected, the market has now factored in a rate cut in September’s FOMC meeting. Over the past month, BTC ETFs have added more than $3.6 billion, while corporate and sovereign treasuries now control 3.64 million BTC, together controlling 17 percent of the total BTC supply. On the other hand, the on-chain fundamentals of Bitcoin have also been improving, with the daily active address count rising to 793,000. If this trend continues, a more active phase may be on the horizon pushing the prices up,” observed Edul Patel, CEO of Mudrex.
But experts also observe that Bitcoin and Crypto do not have clarity as yet. “It is being advocated in certain countries like the USA under a new dispensation, because it suits them as the underlying trade is in US $ and it is the principal reserve currency in the world. Still, there is no clarity if Bitcoin is a Currency, an internet-based store of Value, a Virtual Digital Asset, a commodity or an Alternative Investment Asset. From an India perspective, central bank regulations in India are very clear about Bitcoin Crypto. They basically don’t want it and it will challenge their mandate as a Central Bank. The authorities have ushered in huge taxation, and this has reduced Bitcoin and crypto transactions in India,” remarked Sudin Baraokar - AI, Deep Tech and Digital Transformation Advisor.
He further adds that capital markets in India have come of age and have crossed $4 trillion in Marcap. “Investing locally and through regulated entities is now nation-building. It’s our country, our wealth, our citizens. The question for Indian investors is whether they should invest in foreign, unregulated, non-understandable, anonymous, high-taxable stuff and whether this helps India?”, added Baraokar.