(Kitco News) – Risk-on sentiment has returned with a vengeance as equity indexes set new all-time highs, and the combination of fiscal fears and a rising money supply means Bitcoin could soon break above its May high, according to Ryan Lee, Chief Analyst at Bitget Research.
“Bitcoin’s surge to ~$109,000—just shy of its $112,000 all-time high—is underpinned by strong macro tailwinds,” Lee told Kitco News. “Record U.S. equity performance, a sharp rise in money supply, and expansive fiscal policy, particularly the ‘One Big Beautiful Bill Act,’ are key drivers. The Congressional Budget Office projects this legislation will add $3.3 trillion to the U.S. deficit over the next decade, amplifying expectations of continued monetary expansion.”
Given these conditions, Lee believes Bitcoin is well-positioned to break its previous all-time high as soon as the end of July, with upside potential toward $120,000. “Institutional demand and consistent ETF inflows continue to reinforce bullish momentum,” he added.
Ethereum is also gaining momentum, Lee said, supported by renewed optimism under the crypto-friendly Trump administration and sustained accumulation by whales. “ETH could test $3,000 by the end of July, though market volatility remains a factor.”
“Looking ahead, the anticipated Fed rate cut in September may serve as a further catalyst,” Lee concluded. “We maintain a bullish outlook, expecting Bitcoin to mark a new all-time high before year-end.”
Bitcoin has seen a fair amount of price volatility, with King Crypto trading as low as $107,487 late Monday evening and twice spiking above $109,100 during the North American session.
Bitcoin last traded at $109.007.14 for a gain of 0.68% on the daily chart.
