The New Drivers Behind Bitcoin's Return to High Points

In the era where crypto intersects with AI, the truly key stories are often hidden beyond the noise. To uncover these overlooked truths, an English video program has emerged. Co-created by two hosts, this episode focuses on the different driving factors behind Bitcoin reaching new highs: large-scale institutional capital is replacing retail enthusiasm, and a wavering confidence in the dollar combined with an improved regulatory environment has created a "perfect storm."

It is worth noting that the video was released on July 12, and some data and dynamics may differ from the current situation.

Core Points

• Bitcoin performance: Breaking through historical highs and continuing to rise, institutional capital has become the core driving force, rather than retail investors.

• Stock Market Correlation: Major stock indices are hitting new highs or approaching peak points, with the overall market showing a risk appetite.

• Policy background: The United States expands fiscal spending and debt, which may weaken the long-term credit of the dollar.

• Sustainability of the uptrend: This round of increase is considered more stable than previous speculative cycles due to corporate balance sheets and regulatory support, but a pullback may still occur.

• Companies holding Bitcoin: Some technology companies are incorporating Bitcoin into their asset allocation, motivated by diversification, value appreciation potential, and brand differentiation, but it is not suitable for all companies.

• Bitcoin attributes: exhibit mixed characteristics, performing differently in various market environments, which can be both an advantage and a weakness.

• Potential risks: Unexpected interest rate hikes by the Federal Reserve, tightened regulations, or geopolitical "black swan" events could interrupt the upward trend, but currently, these risks are not imminent.

Institutional Capital Influx

1. In June, over 250 companies announced that they have increased their holdings of Bitcoin, purchasing a total of 68,000 BTC.
2. Last week, 54 entities added a total of 8,434 BTC to their positions, including a major design software company (holding $70 million in Bitcoin ETF, planning to purchase another $30 million).
3. Bitcoin ETF had a net inflow of $1.6 billion from July 6 to 11, including a single-day inflow of $1.18 billion on July 10 (the second highest in history).

Macroeconomic Positive Factors

1. Dollar Trust Crisis: Fiscal expansion exacerbates inflation concerns, investors turn to scarce assets.
2. Risk moderation: Geopolitical conflicts ease; unexpected mild inflation data from Europe and the United States.

Regulatory Environment Improvement

1. US "Crypto Week": The House will review key legislation on stablecoin frameworks, market structure, and more this week.
2. Personnel Changes: A former executive from the cryptocurrency industry has been appointed as the head of a significant regulatory agency, indicating that policies may be relaxed.

These factors combined have driven the Bitcoin market into a new round of upward cycle. However, investors still need to be vigilant about potential risks and closely monitor market trends.