Bitcoin Hits New $123K All-Time High as ETFs Buy 20x More BTC Than Is Mined Daily

Bitcoin has established a new peak above $123,000, driven by a combination of institutional interest, supportive regulation, and market momentum. The surge reflects growing investor confidence and a shift toward wider cryptocurrency adoption. Economist Mohamed El-Erian pointed to these converging trends as key drivers.

Bitcoin surged to a new record high of $123,200 earlier today as large financial institutions continue to deepen their involvement in the crypto market. Investment firms, asset managers, and corporations are increasingly adding Bitcoin to their portfolios, signaling growing trust in the digital asset.

In a on X, the president of Queens’ College at the University of Cambridge and chief economic advisor at Allianz, Mohamed A. El-Erian, said Bitcoin’s rise was “propelled by an accelerating alignment of factors conducive to faster and broader adoption.” These include institutional participation, favorable regulatory moves, and solid market indicators.

Meanwhile, a key factor contributing to the rally is the sharp imbalance between Bitcoin’s supply and the growing demand from ETFs. Bitwise had earlier reported that daily ETF inflows average 8,200 BTC, while only 450 new BTC are mined each day.

For context, spot ETFs purchased 10,000 BTC on July 10, more than 20 times the daily mining output. Notably, BlackRock’s IBIT has the highest number of BTC among these ETFs, now holding over 700,000 BTC and surpassing $84 billion in assets under management.

Meanwhile, the rally is also supported by macroeconomic shifts and renewed institutional activity. President Trump’s announcement of steep tariffs, set to take effect August 1, has reignited trade war concerns, prompting investors to hedge through crypto assets.

Derivatives data also reflects a bullish setup as well, with open interest rising 6.4% to $88.22 billion and volumes exceeding $115 billion. Traders on Binance are showing a long bias, and BTC dominance is nearing a multi-year breakout above 65%, hinting at a capital rotation from altcoins.

In the short term, Bitcoin faces resistance near $125,500. If bulls break this zone, the next targets are $130,000 and $136,000, which aligns with projections from analysts like Ledn CEO John Glover.

Meanwhile, support remains firm at $117,700–$118,200, but unless inflation data due July 17 beats expectations, momentum appears to favor continued upside. A soft CPI reading could reinforce risk-on sentiment and push Bitcoin beyond $125K by midweek.