Bitcoin sets fresh high as market bets on US monetary easing, analyst says

Bitcoin notched a fresh all-time high of $118,800 on venues like Coinbase, riding sustained spot ETF inflows and expectations of monetary easing.

"U.S. policy developments such as fiscal expansion and expectations of further monetary easing have created a backdrop that is undeniably favorable for Bitcoin,” Nansen research analyst Nicolai Sondergaard told The Block. Last week, policymakers passed Donald Trump’s “Big Beautiful Bill” into law, which could pave the way for more budgetary stimulus and money printing in the United States. It’s likely this outcome cushioned BTC’s structural outlook and is “generally supportive of Bitcoin's narrative as a hedge against monetary debasement,” Sondergaard noted.

The rally gathered pace after Bitcoin blew through key liquidation clusters on Thursday. Data from CoinGlass shows more than $1.1 billion in short positions wiped out as the price printed successive records between July 10-11, while open interest stayed elevated—evidence, Søndergaard said, that bulls still have room to run.

The liquidation figures reported are based on publicly available data, which may understate the true extent of market liquidations. 

Sondergaard also flagged improving sentiment in Ether, which has followed BTC higher and reclaimed $3,000 for the first time since February. The recovery coincided with $300 million in record daily inflows to BlackRock’s spot Ethereum ETF as institutional interest surged, The Block reported.

Rally continues ahead of macro events

BTC’s latest price ascent extends a rally that began in April after the world’s largest cryptocurrency fell to $74,000, driven by tariff-related angst. Bitcoin is up over 58% since then and has reached a $2.3 trillion market cap, according to The Block’s price page . Standard Chartered sees the crypto above $135,000 by the end of Q3, and Bitwise has a $200,000 end-of-year target.

Total crypto-market capitalisation has climbed back above $3.6 trillion, with majors such as ETH and SOL posting mid-to-high single-digit gains, raising the GMCI 30 index by over 6%.

Traders now eye two macro catalysts: the July 15 consumer price index and the July 30 FOMC meeting. Fed Governor Christopher Waller said cooling inflation could warrant a rate cut this month, echoing Donald Trump’s call for Chair Jerome Powell to ease policy. Futures markets disagree, assigning only a 7% chance of a cut and a 93% likelihood that the Fed keeps rates unchanged.