Introduction to Bitcoin

Bitcoin is the world’s first decentralized digital currency, not controlled by any national government or financial institution. Through blockchain technology, Bitcoin transactions are recorded in a public distributed ledger, ensuring its security and transparency.

As a digital asset, Bitcoin is not only widely used for payment, but also regarded by many investors as the “digital gold” to hedge against inflation and achieve asset appreciation. With technological advancements and increasing market demand, Bitcoin is gradually being accepted by mainstream financial institutions and individual investors.

Background of Bitcoin price breaking through $110,000

Image:https://www.gate.com/trade/BTC_USDT

In 2025, the price of Bitcoin once again broke through the historical high, surpassing the $110,000 mark. This breakthrough marks a strong upward trend for Bitcoin after a period of adjustment.

According to the latest data, Bitcoin has risen more than 47% since its low point in early April (around $75,000). This strong rebound is attributed to several key factors, with the first being the recovery in market demand, especially the significant participation of investors in the spot Bitcoin ETF products in the United States, bringing in a fund inflow of $740 million. At the same time, the global economic situation is gradually improving, particularly with trade agreements between the United States and other countries, boosting market confidence.

In addition, the participation of institutional investors has also provided strong support for the price of Bitcoin. The financial intelligence company Strategy recently increased its Bitcoin reserves to 576,230 coins, accounting for 2.74% of the total Bitcoin supply, demonstrating strong institutional interest in Bitcoin.

Reasons for the fluctuation of Bitcoin prices

The price volatility of Bitcoin is mainly determined by the following factors:

1. Supply and demand: The total supply of Bitcoin is limited, with a maximum supply of 21 million coins, making it scarce. As more investors join, increased demand often leads to price rises.
2. Investor sentiment and market psychology: Market sentiment plays an important role in the price fluctuations of Bitcoin. For example, when large institutions enter the market, it may trigger a wave of buying; and when there is negative news or policy changes, prices often plummet rapidly.
3. Policy and Economic Environment: The price of Bitcoin is often influenced by government policies. For example, when a country’s government issues new cryptocurrency regulatory policies, the market may fluctuate. Global economic changes, especially macroeconomic changes related to the US dollar, can also directly affect the demand for Bitcoin.

The future price trend of Bitcoin

As Bitcoin surpasses the $110,000 mark, the market is beginning to speculate whether it can break through $120,000 next. According to technical analysis, Bitcoin’s current Relative Strength Index (RSI) and Stochastic Oscillator indicate that it is still in overbought territory, suggesting that although a pullback may occur in the short term, the long-term uptrend remains strong.

In addition, the 50-day Simple Moving Average (SMA) is about to cross above the 200-day SMA, forming the so-called ‘golden cross’ pattern, which is typically a strong buy signal. If Bitcoin continues to maintain its current upward momentum, breaking through the $120,000 mark is not impossible.

Risks and Advice for Bitcoin Investment

While Bitcoin as an asset has tremendous potential for appreciation, its price volatility is extremely high, and the investment risk is also very high. Investors should be aware that the price of Bitcoin may fluctuate significantly in the short term, so caution is advised.

To reduce risk, it is recommended that investors adopt a diversified investment strategy and avoid putting all funds into a single asset. In addition, paying attention to the latest developments in the global economy and the Bitcoin market, and adjusting investment strategies in a timely manner, is also an effective way to avoid losses.

Conclusion

After the price of Bitcoin broke through $110,000, the market’s attention to its future trend further increased. Although Bitcoin carries significant investment risks, its long-term appreciation potential remains enormous. If you are considering investing in Bitcoin, understanding market risks, technical analysis, and investment strategies will help you make wiser decisions.