Bitcoin (BTC) has successfully reached a new all-time high, surpassing the psychological threshold of US$120,000, which equals approximately Rp1.95 trillion (based on an exchange rate of US$1 = Rp16,240).

Several factors contributed to this surge, including high demand, new U.S. regulations during Crypto Week, pro-crypto policies from the current U.S. administration, and inflows from institutional investors.

As of intraday trading at 08:00 AM WIB on Tuesday (July 15, 2025), BTC was priced at US$119,516.53. The previous day, Monday (July 14, 2025), BTC closed higher at US$120,222.27, having hit an intraday all-time high of US$123,153.22.

Year-to-date, BTC has gained around 27%. This rally is mainly due to soaring demand amid limited BTC supply.

Here are the key reasons behind the Bitcoin price surge, as compiled by CNBC Indonesia:

1. Limited Supply

Bitcoin has a fixed maximum supply of 21 million coins. As of July 2025, approximately 93.5% of all Bitcoin has already been mined. The remaining supply is shrinking due to the halving mechanism.

The 2024 halving reduced block rewards to 3.125 BTC, significantly decreasing new supply. Historically, this event triggers price increases 12–18 months after the halving.

2. Massive Institutional Buying

Institutions such as BlackRock and Fidelity through ETFs have increased demand while supply remains tight.
Retail FOMO (fear of missing out) also resurfaces when BTC breaks new price records.

Emerging markets have started using Bitcoin as a hedge against local currency devaluation, adding further demand.
U.S. and global spot Bitcoin ETFs have boosted adoption by allowing institutions and pension funds to invest in BTC without custodial concerns.
These ETFs consistently record daily net inflows, which reduce circulating supply.

Companies like MicroStrategy and others are allocating portions of their cash reserves into BTC as a store of value.
Even minor corporate allocations into BTC could trigger massive price movements due to Bitcoin’s relatively small market cap compared to the broader financial markets.

3. Trump’s Pro-Crypto Policies

The Trump administration has adopted a crypto-friendly stance, including an executive order to create strategic BTC reserves, which also fuels price growth.
Meanwhile, the U.S. Congress is reviewing three major bills during “Crypto Week”:

• Genius Act: Regulating stablecoins

• Clarity Act: Framework for digital assets

• Anti-CBDC Surveillance State Act: Bans personal use of surveillance-based CBDCs
  The expectation of clearer regulation has driven more institutional interest.

4. Bitcoin as a Hedge

Bitcoin is increasingly seen as digital gold—a hedge against fiat currency devaluation and inflation.
If global inflation remains above central bank targets, demand for hard assets like BTC is likely to rise.

5. Interest Rate Trends

Potential rate cuts by the Federal Reserve or looser monetary policy could boost liquidity into risk assets, including Bitcoin.
Historically, BTC has rallied when real yields declined.

6. Network and On-Chain Indicators

Ongoing increases in active wallets, transaction counts, and transfer volume on the Bitcoin network often correlate with rising prices.
When most BTC is held by long-term holders unwilling to sell, liquid supply shrinks, leading to price spikes when demand increases.
Moreover, a rising hashrate indicates a more secure network and growing confidence among miners in Bitcoin’s long-term sustainability.

7. Four-Year Historical Cycle

Bitcoin’s price movements tend to follow a four-year cycle centered around its halving events.

Bitcoin’s Historical Cycles: