Bitcoin hits a new high, attracting market follow

The price of Bitcoin recently broke through the $118,400 mark, setting a new historical record. This breakthrough has once again awakened the market's understanding of Bitcoin's scarcity and safe-haven attributes. This round of increase is not driven by a single factor, but rather the result of multiple factors working together, including the continuous inflow of institutional funds, the rising heat of the ETF market, adjustments in U.S. macro policies, and changes in market expectations.

From a technical perspective, Bitcoin has not only successfully broken through the key resistance level of $112,000, but short-term technical indicators still show upward momentum. Meanwhile, as the global supply of the dollar continues to expand, industry experts are also taking this opportunity to remind investors: even if they missed this wave of increase, there will still be opportunities to buy during pullbacks, reiterating the constant supply characteristic of Bitcoin.

This statement is not just a simple word of encouragement, but also emphasizes the core logic of Bitcoin as a deflationary asset once again. In the context of increasing global inflation and the continuous devaluation of fiat currencies, the fixed supply cap of 21 million Bitcoins increasingly highlights its scarcity value. It is worth noting that over 95% of Bitcoins have already been mined, coupled with miners' revenues gradually shifting to rely on transaction fees, as well as the gradual implementation of scaling solutions like the Lightning Network, the overall supply-demand structure of Bitcoin is becoming increasingly tight.

From a technical analysis perspective, professional analysts point out that the Bitcoin daily chart is forming a "cup and handle pattern". If it can firmly hold above $112,000, it is expected to challenge the high of $230,000 in the coming months. Once this major uptrend is established, it will undoubtedly drive the attention of related ecosystem projects and attract more speculative funds into the market.

In the context of rapidly changing global macroeconomic conditions, the market's demand for concepts such as "de-dollarization", "digital gold", and "limited supply" is increasing. As the US government considers restarting tariff policies, the Federal Reserve's meeting minutes signal interest rate cuts, and institutional investors begin to position for a new round of long-term holdings, Bitcoin prices and the capital flow within its ecosystem are showing significant correlation effects. This not only marks a phase peak in asset prices but also indicates that the entire cryptocurrency market is moving towards a more mature new stage.

Conclusion

The chain reaction brought about by Bitcoin once again reaching a historical high not only reflects the widespread recognition of its anti-inflation, verifiability, and scarcity among investors, but also provides a broader development space for innovative applications built around core assets. Whether it's short-term technical indicators or long-term supply and demand structures, they indicate that the current situation is not the end, but the beginning of a new cycle. For investors who missed this round of increase, rather than regretting, it is better to wait for the next opportunity, as the true value lies not in short-term price fluctuations, but in a profound understanding of supply logic and market development trends.

Investing in cryptocurrency carries high risks, with significant price fluctuations that may lead to financial losses. This article is for reference only and does not constitute investment advice. Readers are encouraged to conduct their own research and make decisions with caution.