Bitcoin Eyes New Heights Amid Growing Institutional Demand and Regulatory Momentum

Bitcoin set a new all-time high yesterday and continues to test the $112,000 resistance level today, signaling the possibility of a major breakout. According to Simon Peters, crypto analyst at eToro, the long-term outlook remains bullish as multiple factors continue to support the upward trend.

“Ultimately, the price should continue to climb over the long term,” said Peters. “Bitcoin is behaving in line with the widely held narrative — as a hedge against monetary debasement — especially as central banks maintain expansive monetary policies, government borrowing continues, and global money supply rises.”

The increasing demand for bitcoin, particularly from institutional investors, is further fueling its price momentum. Public and private companies, institutional funds, and ETFs now hold approximately 3.5 million BTC, representing around 17% of the total fixed supply of 21 million — a significant rise from 2.6 million BTC just one year ago.

Additionally, the crypto sector is gaining stronger political and regulatory backing. The U.S. is entering what’s being dubbed as ‘Crypto Week’, during which the House of Representatives is expected to deliberate on three landmark pieces of legislation. If passed, these bills would further legitimize the industry and lay a stronger foundation for future growth.

Despite the positive outlook, Peters advises caution. “While optimism is high, the potential for short-term pullbacks remains. Investors should assess their time horizon and risk tolerance before entering the market,” he said. “A strategy like dollar-cost averaging — investing a fixed amount regularly — may help reduce timing risk and lower the average cost of investment over time.”

As bitcoin continues to gain credibility and adoption, the current environment offers a potentially compelling opportunity — but as always, prudent risk management remains key.