Bitcoin (BTC) hit a new all-time high of $122,205 in early Asian trading hours today, demonstrating remarkable resilience despite escalating global trade tensions, including President Donald Trump’s latest push for tariffs on imports from the European Union and Mexico.
The cryptocurrency’s continued rally this year is largely fueled by surging institutional demand and a growing trend of corporate treasury allocations. According to Bitwise’s Q2 2025 data, 46 newly listed public companies collectively added an impressive 159,107 Bitcoin to their balance sheets.
Further bolstering Bitcoin’s momentum are robust inflows into spot Bitcoin exchange-traded funds (ETFs) managed by major financial institutions like BlackRock and Fidelity. A weakening U.S. dollar has also contributed to the upward trend, with the Dollar Index currently trading more than six points below its 200-day moving average.
Recent supportive developments in U.S. policy have also boosted investor confidence. The Senate’s passage of a stablecoin regulation bill in June, along with revived discussions surrounding the creation of a Strategic Bitcoin Reserve, signals increasing legitimacy for digital assets among large investors.
This week’s rally has unfolded against a complex global economic backdrop. On July 13, President Donald Trump announced plans to impose a 30% tariff on imports from Mexico and the European Union, two of America’s largest trading partners. Both regions are preparing countermeasures, with the European Commission stating it will adopt retaliatory measures by early August if a deal isn’t reached.
Historically, such trade tensions have often rattled the cryptocurrency market. However, Bitcoin has remained largely unshaken so far, with over $2 billion in new capital flowing into digital assets this month alone. Traders appear to be prioritizing strong on-chain flows and ETF data over geopolitical headlines.
While Bitcoin’s performance remains strong, upcoming U.S. inflation data could shift market focus. On Wednesday, July 16, the Bureau of Labor Statistics is set to release June Consumer Price Index (CPI) data. Economists anticipate core inflation to rise by 0.3%, potentially pushing the annual rate to 2.9%. If confirmed, higher-than-expected inflation could pose challenges for risky assets like Bitcoin and potentially delay anticipated interest rate reductions by the Federal Reserve. Investors will be closely watching to see if tighter monetary policy begins to temper Bitcoin’s current rally.
