Bitcoin’s roller coaster journey continues as analysts pinpoint one critical factor to watch: trading volume. With the cryptocurrency hovering around $100,000, the next hurdle is $120,000—a psychological ceiling that, if breached, could propel Bitcoin into uncharted territory.
The Volume Game
Trading volume isn’t just a number on a screen. It’s the heartbeat of the market. According to crypto analysts, Bitcoin’s recent sideways movement is a symptom of tepid trading activity. Lisa Thompson, a market strategist at Crypto Insight, explained, “We’ve seen Bitcoin flirt with these levels before, but what’s missing is the momentum driven by substantial volume. It needs to become a frenzy again.”
But why does volume matter so much? Simply put, higher trading volumes often indicate strong investor interest and can lead to more robust price movements. Without this surge, Bitcoin may continue to drift around its current price, unable to muster the strength needed to break through the $120,000 barrier. As explored in our recent coverage of Bitcoin Market Top Is ‘Nowhere Near’, analysts believe that the current market dynamics could lead to significant price swings.
Historical Parallels
Look back a couple of years, and you’ll see a similar narrative. In late 2023, Bitcoin made headlines when it rocketed past the $80,000 mark. The catalyst? A dramatic increase in trading volume, fueled by a combination of institutional interest and retail FOMO (fear of missing out). Back then, platforms like Binance and Coinbase were buzzing with activity as everyone from hedge funds to millennials jumped on board.
Fast forward to today, and the landscape is different. Yes, Bitcoin’s institutional adoption has matured, but the retail enthusiasm that once drove massive spikes in volume has waned. This time around, market players are more cautious. The rise of decentralized finance (DeFi) and newer blockchain projects have also diverted attention away from Bitcoin, offering alternative avenues for investment. For a deeper dive into the potential for larger price swings, see our analysis predicting ‘larger price swings’.
The Big Picture
So, what’s next for Bitcoin? Analysts seem divided. Some optimists believe that the awaited Bitcoin ETF approval in the U.S. could be the spark needed to ignite trading volumes once more. “A Bitcoin ETF could open the floodgates for a new wave of investors,” noted Mark Liu, a crypto analyst at Digital Trends. Others remain skeptical, pointing out regulatory hurdles and the unpredictable nature of crypto markets.
Then there’s the question of macroeconomic factors. The global economy, interest rates, and inflation are all pieces of the puzzle. As central banks around the world continue to adjust their monetary policies, Bitcoin’s role as a hedge against traditional financial systems is being closely watched. Could this macro backdrop create the perfect storm for Bitcoin to surge again? Only time will tell.
Forward Thinking
As we move into August, all eyes will be on Bitcoin’s trading volumes. Will they swell, pushing the cryptocurrency to new heights? Or will Bitcoin remain stuck in its current limbo, unable to reclaim its former glory? The stakes are high, and the market’s next moves could set the tone for the rest of the year.
In this ever-evolving landscape, one thing remains certain: Bitcoin is a force to be reckoned with. Whether it breaks through $120,000 or not, it’s a barometer for the broader crypto market, reflecting both its potential and its volatility. As investors and enthusiasts alike watch the charts, the conversation continues—where will Bitcoin go from here?
Source
This article is based on: Bitcoin analysts say this must happen for BTC price to hit new highs
Further Reading
Deepen your understanding with these related articles:
- Single Trader Liquidated for $100 Million as Bitcoin Soars Past $123K: Market Watch
- Bitcoin price drop to $114K possible as BTC whales take profits
- Bitcoin hits new highs, gains stability and scale in its institutional era — Will it last?
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
