Bitcoin price staged a strong recovery on Wednesday, climbing back towards the pivotal $120.000 mark. The resurgence follows a brief dip and is fueled by a powerful combination of political momentum from Washington and a relentless wave of capital from institutional investors, signaling a new phase of maturity for the digital asset.
The cryptocurrency was trading around $119.000 during the European session on July 16, 2025, erasing most of the previous day’s 1,74% loss. The renewed optimism comes as market participants digest significant developments that could shape Bitcoin’s future accessibility and legitimacy in the world’s largest economy.
Washington’s “Crypto Week” Gets a Presidential Push
A key catalyst for the market’s bullish sentiment was a direct intervention from US President Donald Trump. In a social media post early Wednesday, Trump announced he had secured the necessary votes to advance the GENIUS Act, a landmark bill for stablecoin regulation, through the House of Representatives.
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“I am in the Oval Office with 11 of the 12 Congressmen/women necessary to pass the GENIUS Act and, after a short discussion, they have all agreed to vote tomorrow morning,” Trump stated, adding that the move had the support of House Speaker Mike Johnson.
This development revived the legislative “Crypto Week,” which had stumbled on Tuesday after a procedural vote failed. The week’s agenda also includes the CLARITY bill and the Anti-CBDC Surveillance State Act. The successful passage of these bills would represent the most significant step toward a comprehensive regulatory framework for digital assets in the US, a milestone the industry has long awaited.
James Smith, Co-Founder of crypto compliance firm Elliptic, commented, “This is a pivotal week for the digital asset industry. The three landmark pieces of legislation show promising momentum for a future where there are clear and enforceable frameworks.”
The Unstoppable Force of Institutional Capital
While political developments provided the spark, the fire is being fed by an unyielding appetite from Wall Street. Data reveals that institutional demand for Bitcoin is not just growing; it’s accelerating.
On Tuesday, US-listed spot Bitcoin ETFs recorded over $402,99 million in net inflows, marking the ninth consecutive day of positive flows since July 2, according to SoSoValue data. This consistent buying pressure from major financial players underscores a deep and structural shift in how large-scale investors view Bitcoin.
Further evidence of this trend emerged this week:
• Cantor Fitzgerald is reportedly nearing a $4.000 million SPAC deal with Adam Back’s Blockstream to acquire over 30.000 BTC.
• Banking giant Standard Chartered launched a spot trading desk for Bitcoin and Ethereum, catering specifically to its institutional clients.
These moves illustrate that Bitcoin is rapidly moving from a speculative niche to a recognized component of corporate and institutional financial strategy.
What’s Next? Breaking Old Cycles
With Bitcoin having set a new all-time high of $123.218 on Monday, analysts are closely watching to see if this bull run will follow historical patterns. A recent K33 Research report noted that previous cycles have peaked around 1.060 days after their bottom, suggesting a potential top in October 2025 if history were to repeat.
However, the report’s analysts caution against relying solely on past performance. The market’s current structure is fundamentally different. The advent of spot ETFs has created a new, regulated firehose of demand, while the growing narrative of nation-state adoption adds another layer of support.
“We believe BTC has moved from a speculative reflexive asset to a more established reactionary store of value in a world with tenser global trade and enhanced inflationary pressures,” the K33 analyst noted.
Technical Outlook: Key Levels to Watch
After a nearly 18% rally over three weeks, a period of consolidation or a minor pullback is healthy. The key question is where the price finds its footing.
• Support: If a pullback occurs, the first major support level to watch is the previous all-time high set in May, around $111.980. Holding above this level would be a strong sign of continued bullish strength.
• Resistance: To continue the upward trend, Bitcoin needs to decisively reclaim and close above the $120.000 psychological barrier. A successful move above this level would open the door to retesting the recent peak at $123.218 and entering further price discovery.
BTC/USDT daily chart
The Relative Strength Index (RSI), a momentum indicator, is at 69. While this indicates strong buying pressure, it remains below the “overbought” territory, suggesting there is still room for the rally to run before becoming overheated.
Disclaimer: This article is for informational purposes only and should not be taken as financial advice. Always conduct thorough research before making investment decisions.
