Bitcoin Rally May Continue Amid Tariff-Driven Trade Flows and Rising Treasury Yields

Key Points

1. Bitcoin's rally is fueled by macroeconomic factors including U.S. tariff policies and high Treasury yields, creating a 'just-in-case financing' strategy that benefits risk assets like Bitcoin.

2. Institutional adoption is growing, with Bitcoin and Ethereum ETFs attracting significant inflows ($3.39 billion and $1.10 billion respectively as of mid-July).

3. Analysts attribute the rally to expectations of U.S. interest rate cuts in 2025, which have boosted risk-on sentiment and Bitcoin's price prospects.

4. Bitcoin options with strike prices at $130,000 indicate strong market confidence in further price advances.

5. The combination of these factors suggests Bitcoin's breakout above $120,000 may be the beginning of sustained growth, making it a critical asset to watch.