Bitcoin Price Breakout: ETF Demand, Whale Buys, and U.S. Legislation Drive $121K Surge
BTC Clears $121K as Spot ETF Flows Rebuild, Supply Shrinks, and Pro-Crypto Laws Gain Steam in Washington | That's TradingNEW
Bitcoin Price Blasts Through $121K as Institutional Momentum Rebuilds
ETF Inflows Accelerate as BTC-USD Reclaims $121,000
Bitcoin (BTC-USD) surged past the key $121,000 level, marking a fresh YTD gain of over 30% and reigniting bullish momentum after a multi-week consolidation. The breakout was fueled by more than $650 million in net inflows into spot Bitcoin ETFs over the last five sessions, led by BlackRock’s IBIT, which alone absorbed $310 million during Thursday’s rally. The 10-day cumulative ETF inflow is now above $1.1 billion, the strongest since early March. Traders interpreted the return of capital into these vehicles as a sign that institutions are once again positioning for upside exposure — especially ahead of regulatory clarity and macro catalysts.
Whale Addresses and Dormant BTC Spark Supply Shock Narrative
Blockchain data shows long-dormant wallets and whale-tier addresses (1,000+ BTC) are resuming accumulation. According to Glassnode, over 12,000 BTC moved out of exchanges last week, while whale-controlled addresses added 19,800 BTC over a five-day window. This comes amid a drop in active exchange reserves to their lowest level in over three years, raising the specter of another supply squeeze. The “HODL Waves” metric also shows a rising concentration of BTC held for more than one year, now at 69.2%, signaling conviction-led holding behavior that typically precedes large breakouts.
Crypto Week Legislation Drives Sentiment: GENIUS, CLARITY, and Anti-CBDC Bills
Bitcoin’s rally was turbocharged by optimism around U.S. crypto legislation. The GENIUS Act, aimed at regulating stablecoin reserves, and the CLARITY Act, which proposes a regulatory split between the SEC and CFTC, both cleared committee stages with bipartisan traction. Meanwhile, the Anti-CBDC Act has resurfaced amid growing concerns about digital surveillance. Traders viewed this legislative slate as the most coordinated crypto policy push in U.S. history. Pro-crypto House figures even floated language explicitly protecting decentralized networks from securities designations — a major win for BTC.
Technical Breakout Targets $126K, But Overhead Risk Lingers at $128.4K
Technically, Bitcoin cleared the $119,500–$120,000 supply block that had capped the range since mid-June. Daily RSI surged to 67.3, still below overbought territory, and MACD confirmed a bullish crossover. If BTC can maintain daily closes above $121,000, the next fib extension zones sit at $124,500 and $126,100. However, historical resistance looms near $128,400, a price aligned with the March failed breakout zone. A daily close below $118,600 would invalidate the setup and shift focus back to $113,000, the prior swing low.
Mining Flow, Hashrate Spike Offer On-Chain Confirmation
On-chain metrics also show support for the breakout. Miner outflows have moderated, with only 1,600 BTC moved to exchanges last week — down from 3,900 BTC a month prior. Hashrate has rebounded to 637 EH/s, a new all-time high, signaling robust miner confidence. Miner reserve balances have stabilized near 1.83 million BTC, reversing a six-week downtrend. Historically, such miner-side stability combined with price momentum correlates with multi-week rallies.
DeFi Reacceleration and Stablecoin Supply Expand BTC Liquidity
Beyond BTC itself, DeFi activity is climbing. Total value locked (TVL) across protocols rose 9.7% week-over-week, led by Ethereum L2 platforms and Bitcoin-native Runes activity. More importantly, stablecoin supply expanded by $3.1 billion in the past seven days, led by USDT and USDC issuance. Expanding stablecoin supply often precedes price expansions across crypto markets by boosting liquidity and onboarding capital into centralized and on-chain platforms alike. This liquidity tailwind gives Bitcoin the structural fuel to extend higher.
Verdict: Buy Bitcoin (BTC-USD) on Strength — Targets $126K Then $132K
The breakout above $121K is not just technical — it’s structural. Institutional inflows, whale wallet activity, shrinking exchange supply, and favorable U.S. policy momentum all reinforce the setup. ETF demand is real, and on-chain data confirms this rally is backed by conviction, not hype.
Buy Bitcoin (BTC-USD) on dips above $120,000, with initial targets at $126,000 and secondary extension to $132,000. Risk should be defined at $118,500. Short-term volatility may persist near legislative headlines, but all signals point to sustained accumulation and upside continuation.
