With a breakout past a key level dating back to 2017, Bitcoin may be entering the early stages of a powerful bull run.
This week, Bitcoin reached a new all-time high of $118,700, breaking through a major resistance zone that has held firm since 2017. It’s a technical and psychological breakthrough that could mark the beginning of an explosive bullish phase for the world’s leading cryptocurrency.
The model-destroying bull run you've been waiting for is on the other side of this line.
— StackWisely (@stackwisely) July 3, 2025
Will we break it? pic.twitter.com/ufSH0aBaN0
A Major Shift Since April
Back in April, the sentiment was very different. Former President Donald Trump was pushing for spending cuts to reduce the U.S. deficit, and his escalating trade war sent fear rippling through global financial markets. The result? A local Bitcoin low of $74,400, sparking fears of a new bear market.
But beneath the surface, the fundamentals remained strong. The U.S. economy continued to show resilience, the labor market remained tight, and GDP growth stayed above 2%. These underpinnings have now helped flip the macro environment in favor of Bitcoin.
The Stars Are Aligning for Bitcoin
Here’s why the outlook has turned sharply bullish:
- Trump abandons austerity: He's now embracing aggressive fiscal spending to boost growth faster than the national debt.
- Global governments follow suit: China is rolling out major economic stimulus, and Europe is ramping up defense and infrastructure spending.
- U.S. economy stays strong: Consumer and business confidence are on the rise.
- Central banks are cooperative: The Federal Reserve and others aren't standing in the way, effectively opening the gates to a full-fledged bull market.
The result? A flood of capital pouring into risk assets like Bitcoin. With fading recession fears and strong macro data, investor appetite for risk is rising—creating fertile ground for crypto growth.
Inflation Risk Is the Price to Pay
Of course, there are trade-offs. All this stimulus and economic momentum could eventually lead to higher inflation.
And while the short-term outlook remains bullish, the party won’t last forever.
What Could End the Bitcoin Bull Run?
The two major risks on the horizon are:
• Rising inflation
• Sustained high interest rates
If inflation takes off or central banks raise rates in response to overheating economies, this could act as a brake on the market. High interest rates typically lead to:
- Higher mortgage costs
- Higher corporate borrowing costs
- More expensive consumer loans
These effects could gradually cool the economy and dial back investor enthusiasm.
Conclusion: Bullish Now, But Eyes on the Exit Later
Right now, the environment looks highly favorable for Bitcoin. While short-term volatility is always a risk—especially with ongoing geopolitical tensions or unexpected economic shocks—the medium-term momentum is clearly upward.
Still, every bull run eventually meets resistance. For now, the music is playing—but keep an eye on the inflation gauge and interest rates to know when the tune might change.
To all my readers that read the whole article, I am sorry I didn't post for a little while, I was unable to find the time to write any detailed posts. However I couldn't help myself feeling grateful for the recent Bitcoin run and thus needed to post something. Hope to be posting more regularly soon again.