Bitcoin Hits All-Time High of $120K, Led by Conviction Not Hype

Bitcoin reached a new milestone early Monday, surging to an all-time high of $120,000 on Coinbase amid sustained institutional demand, strengthening on-chain metrics, and a notable uptick in long-term holder activity.

The latest rally extends Bitcoin’s positive momentum through July, marking a 13% monthly gain and setting the stage for its third consecutive green candle, a sign of persistent market confidence despite high prices.

The rise to $120K has been largely driven by spot ETF flows, particularly those tied to BlackRock’s iShares Bitcoin Trust (IBIT). The fund now holds more than 700,000 BTC, officially overtaking MicroStrategy’s long-held lead and pushing its assets under management (AUM) to a record $83 billion.

The pace of growth has been staggering. IBIT’s AUM has tripled in just 200 trading days, a feat that took over a decade for the gold ETF GLD to achieve. According to Bloomberg ETF analyst Eric Balchunas, IBIT is now the 21st largest ETF globally and reached the $80 billion mark five times faster than any ETF in history.

Despite the price breakout, on-chain indicators suggest the market remains in a healthy phase. The Net Unrealized Profit/Loss (NUPL) for long-term holders stands at 0.69, below the 0.75 level typically associated with market tops and excessive optimism. For context, Bitcoin spent over 200 days in that overheated zone during its last cycle. In the current cycle, it's barely reached 30.

This signals room for further upside, as many long-term holders are still sitting on unrealized gains without significant selling pressure.

It is worth noting that network usage is also on the rise. According to Cointelegraph, daily Bitcoin transactions have increased from 340,000 to 364,000 over the past two days. However, these figures remain well below peak activity levels seen during prior tops, which suggests market participants are not rushing to take profits.

“There are no signs of active coin selling in the market,” Adler said. “This strengthens both the fundamental and technical bullish signal.”

Further supporting Bitcoin’s rally is the growing conviction among accumulator addresses, wallets that consistently acquire Bitcoin without significant outflows. Data from CryptoQuant reveals these wallets now hold 250,000 BTC, the highest level recorded in 2024. In the past month alone, accumulation has jumped 71%, highlighting growing confidence among long-term investors.

With ETF demand rising, market sentiment stable, and long-term holders refraining from taking profits, analysts suggest Bitcoin may have more room to climb.

As accumulation deepens and network activity builds without signs of panic, the $120K milestone may simply be a stepping stone toward even higher targets.