Why is Bitcoin up today (July 3)?
Bitcoin ETF inflows top $11 billion, driving institutional demand
The ongoing cryptocurrency rally is largely supported by favorable macroeconomic conditions, particularly the significant expansion of the eurozone’s monetary base.
The Euro Area Money Supply (M2) reached a record 15.74 trillion euros in May 2025, showing a 3.55% increase year-over-year, which aligns with the United States’ liquidity growth trajectory. This synchronized monetary expansion across major economies has created a supportive environment for risk assets like Bitcoin, driving global investor confidence. Historically, Bitcoin’s bull cycles have closely mirrored growth in the M2 money supply, reinforcing the asset’s correlation with rising global liquidity.
Institutional adoption and technical breakouts reinforce the bullish trend
Institutional involvement in crypto markets has intensified, with over $11 billion flowing into Bitcoin ETFs in recent weeks, bolstering demand from large-scale investors. Regulatory clarity in the U.S. under pro-crypto policies from President Trump’s administration has further encouraged institutional participation.
This influx of capital coincides with Bitcoin’s technical breakout above key resistance levels, including a surge past the $109,800 threshold, its highest price in over a month. Trading volumes have significantly increased during this rally, indicating authentic buying interest rather than market manipulation, and technical indicators such as the MACD and EMA continue to support a sustained bullish trend.
Market outlook remains positive amid geopolitical and economic shifts
Although Bitcoin faces strong resistance near its previous all-time highs, the broader market sentiment remains optimistic. Bitcoin’s structural bullish thesis is reinforced by the weakening U.S. dollar, rising inflationary pressures, and record-breaking equity markets. Analysts suggest that the market is poised for further gains but awaits a decisive macroeconomic catalyst to push prices higher.
Analyst Anton Kharitonov stated:
“As I predicted earlier, all indicators suggest that Bitcoin could reach a new all-time high this week. A surge to $140,000 in July or August is a highly likely scenario.”
The Fear & Greed Index currently signals “Greed,” while related crypto stocks continue to rally, emphasizing strong investor enthusiasm. According to analyst Anton Kharitonov, the convergence of ETF inflows, favorable U.S. policies, and a bullish technical setup are setting the stage for Bitcoin’s next major move.
Recently we wrote that Bitcoin price action has taken a decisive turn this week, breaking away from the bearish price channel that had weighed on sentiment over the past two weeks.
