Bitcoin has officially broken past the $118,000 mark, hitting a new all-time high. Crypto analyst Virtual Bacon believes this is the beginning of a major bull cycle. However, he warns that altseason has not yet arrived.
Here’s what’s happening, what to watch for, and why investors should stay patient.
Over the last seven days, Bitcoin has climbed 8.8%. So far this month, the price has jumped nearly 10%, touching a new all-time high of $118,000.
Virtual Bacon considers this breakout a major bullish signal and believes it marks the start of a new bull market. He points out that Bitcoin typically leads during early bull phases, with altcoins following once liquidity shifts.
“Bitcoin’s breakout confirms the beginning of a new cycle,” he wrote on X.
Bitcoin’s current support levels:
Bitcoin dominance currently stands at 64.58%, down from 65.50% on July 1. While this slight drop is a good sign, altseason typically begins after a sustained fall in BTC dominance.
Virtual Bacon points out early indicators:
From July 5 to 10, ETH/BTC surged by 9.49%, although it saw a minor correction of 1.08% afterward. The strength in ETH and SOL is encouraging, but not yet a confirmation of full altcoin rotation.
A major factor supporting the crypto rally is the Federal Reserve’s quiet liquidity injection. Virtual Bacon outlines two major moves:
These actions boost bank reserves and allow for more lending, which increases liquidity in the broader financial system.
Additionally, the Global Liquidity Index is making a higher low. If it breaks above its April and September 2024 highs, it could confirm expanding liquidity—another condition needed for altseason.
The next FOMC meeting is scheduled for September 17. Reports suggest there is a 64% chance of a rate cut in Q4 2025, which could further fuel crypto momentum.
While Bitcoin’s breakout is undeniable and the early signs for altcoins are positive, Virtual Bacon advises caution. A confirmed altseason requires:
Investors are advised to avoid jumping into low-cap altcoins prematurely. Instead, focus on large-cap coins showing early strength and wait for more macro confirmation.
As of July 12, 2025, the global cryptocurrency market cap is around $3.68 trillion. Bitcoin is trading near $117,980, showing slight daily fluctuations, while major altcoins like XRP and Stellar are seeing significant gains.
The outlook for July 2025 is optimistic. Bitcoin has already hit a new all-time high, and analysts forecast it could reach $120,000 in the coming months. The total crypto market cap exceeding $3.5 trillion signals strong momentum.
Altcoins are showing mixed but generally positive performance. While some are consolidating, major ones like XRP are up significantly (around 7-8%), and Stellar (XLM) has seen a surge of over 20% today, indicating a broader altcoin rally.
The Federal Reserve is quietly injecting liquidity into markets through actions like an $11 billion repo injection and a proposal to reduce the Supplementary Leverage Ratio (SLR), boosting bank reserves and lending.
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