Institutional interest and major macroeconomic changes drive Bitcoin to surpass $110,000

Bitcoin has climbed above $110,000, surpassing a significant threshold and reigniting interest in its chart patterns and the role of institutional investors. The digital asset has developed what analysts describe as a "cup and handle" formation, a bullish technical signal, prompting speculation about whether it could soon reach $123,000 or even $130,870, as indicated by several technical metrics. Notably, this pattern differs from the one seen in 2021, featuring a steadier breakout and a less pronounced pullback, which points to a more composed market environment compared to the intense excitement of earlier cycles Bitcoin 2025 Cup and Handle VS 2021 Cup and Handle [ 1 ] Bitcoin Prints Cup and Handle Formation, Analysts Eye $123K Upside [ 3 ] Bitcoin draws ‘biggest cup and handle’ pattern that … [ 5 ].

Historically, the cup and handle pattern has been a strong indicator of upward momentum for Bitcoin. While the 2021 pattern preceded a steep 80% drop, the 2025 version has so far shown only a 30% retracement before buyers returned in force. Unlike the heavy selling pressure of 2021, recent bearish moves have been relatively mild, with buyers quickly defending key support. The current pattern lacks a fully developed handle—typically requiring a period of consolidation—so traders remain wary, as a breakout without clear risk parameters may discourage professional participation Bitcoin 2025 Cup and Handle VS 2021 Cup and Handle [ 1 ] Bitcoin Prints Cup and Handle Formation, Analysts Eye $123K Upside [ 3 ]. On the daily chart, Bitcoin has challenged important technical markers, such as the 30-day EMA and a double-bottom neckline at $90,000, before pushing past the $100,000 level Bitcoin 2025 Cup and Handle VS 2021 Cup and Handle [ 1 ] Bitcoin’s Cup & Handle Pattern Signals Breakout Surge Ahead [ 4 ].

Momentum has also been driven by greater institutional involvement. U.S. spot

ETFs have seen inflows exceeding $50 billion since their introduction in early 2024, with BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s FBTC at the forefront. These investment vehicles have made Bitcoin more accessible to institutions, allowing them to gain exposure without dealing with direct custody or blockchain infrastructure. By late 2025, ETFs represented 6.6% of Bitcoin’s total market value, with daily trading volumes topping $3 billion. This consistent demand has helped establish a price floor, as ETFs absorb selling pressure during downturns and help maintain market liquidity $3B in Bitcoin ETF Trading as Institutional Flows Hit 2025 Highs [ 6 ] Will Bitcoin Crash or Rise in September 2025? - Analytics Insight [ 9 ] BTC, ETH Price News: Bitcoin Surges Above $110K … [ 10 ].

Broader economic conditions are also shaping Bitcoin’s direction. The weakening of the U.S. dollar, fueled by expectations of Federal Reserve rate reductions, has historically moved in tandem with Bitcoin’s price. Rising inflation and the possible addition of MicroStrategy (MSTR) to the S&P 500 could further encourage risk-taking, enhancing Bitcoin’s role as a hedge. Nevertheless, volatility remains a challenge, with large leveraged positions being liquidated during sharp price swings. For example, a 3% jump above $110,000 resulted in $110 million in short positions being wiped out within an hour, underscoring the risks of leverage BTC, ETH Price News: Bitcoin Surges Above $110K … [ 10 ] .

Although September has typically been a weak month for Bitcoin—averaging a 3.77% decline since 2013—analysts believe 2025 could break from this pattern. Large holders, or "whales," with over 19,000 addresses owning more than 100 BTC, are accumulating during dips, suggesting confidence among long-term investors. The current price consolidation between $107,000 and $110,000 is reminiscent of the 2017 setup before Bitcoin’s rally to $20,000 by year’s end. Should the cup and handle pattern complete, the projected target of $123,000 may be reached, with some experts predicting gains of up to 108% from current prices Bitcoin draws ‘biggest cup and handle’ pattern that … [ 5 ] PDAXScope: BTC hits $110K, ETH outlook, … [ 11 ].

The intersection of technical signals, institutional participation, and macroeconomic trends places Bitcoin at a crucial crossroads. While short-term swings and seasonal patterns still pose risks, the broader movement toward mainstream financial integration—through ETFs and strategic investments—marks a significant step forward. As the market anticipates a decisive breakout, the balance between technical setups and macroeconomic forces will continue to shape Bitcoin’s next phase.