BTC Price Jumps 12% in Hours: What’s Behind Bitcoin’s Surge—and Could $80K Be Next?

Bitcoin nears new all-time high as ETF inflows and macro tailwinds fuel July rally Key points • BTC briefly touched $111,400 early Wednesday, less than 1 % shy of its May peak at $112,000. • 74 % of circulating supply now sits in long-term wallets, the highest share on record, signalling tightening float. • Spot-bitcoin ETFs logged a net $680 million of inflows over the past five trading sessions, according to Ark 21Shares data. • Traders eye Thursday’s U.S. CPI print and next week’s Fed testimony for confirmation that real yields will stay subdued. Price action After opening Asia at $109,000, bitcoin ripped through the psychologically important $110k level, peaking at $111,400 before profit-taking trimmed gains to $109,900 at press time. The move caps a seven-day advance of 3.8 % and keeps BTC’s year-to-date return above 46 %. 24-hour derivatives liquidations totalled $163 million, 81 % of them short positions, underscoring the squeeze. Why it’s rising 1. Institutional demand: BlackRock’s iShares Bitcoin Trust grabbed another 4,900 BTC on Tuesday, pushing its holdings above 330,000 coins. Aggregate spot-ETF AUM has surpassed $200 billion, a fresh record. 2. Shrinking supply: On-chain metrics show exchange balances at their lowest since December 2017, while long-term holders added 32,000 BTC in the past month, Ark Invest noted. 3. Macro backdrop: Softer global PMI data has rekindled expectations for two Fed cuts before year-end, pressuring the dollar index and boosting risk assets. What’s next • Resistance sits at $112k; a clean break would open the door to the 1.618 Fibonacci extension at $118,300. Support remains $107,300, the lower bound of June’s consolidation channel. • CPI on Thursday – economists forecast headline inflation to slow to 2.8 %. A downside surprise could accelerate flows into crypto. • Mt. Gox repayments, scheduled to start in August, remain the primary overhang; the estate will distribute up to 142,000 BTC to creditors. Market ripple Ether outperformed, jumping 6 % to $2,730 as traders rotate into majors ahead of the anticipated July 15 ETF approvals in Europe. Solana added 4 %, while meme-coin PEPE spiked 11 % on rumours of an exchange listing. The CoinDesk Market Index rose 2.1 % on the day. Regulatory lens In Washington, House Financial Services will vote next week on a bipartisan stablecoin framework that could grant the CFTC clearer oversight of BTC spot markets. Analysts at JP Morgan say passage would “remove a lingering headline risk” and pave the way for further institutional participation. Bottom line With liquidity migrating to spot ETFs and on-chain supply continually tightening, bitcoin’s path of least resistance remains higher—provided macro data confirm disinflation and the Fed stays patient. A decisive close above $112k could trigger the next leg toward $120k and keep crypto at the centre of summer market narratives.