The flagship cryptocurrency opened the day with an attempt to recover, seeking to offset its recent decline. Bitcoin has now joined the crypto race, competing with Ethereum, which is also striving to hold onto its leading position.

The value of BTC has approached a record high, as demand from institutional investors and corporate bond buyers fuels the growth of the digital asset market.

On Monday, August 11, the price of the first cryptocurrency surged 3.3%, surpassing $122,000 — just below the previous record set in mid-July. On Tuesday, August 12, Bitcoin slightly retreated, trading at $119,036 as it attempted to regain ground.

Ethereum is also aiming for the top spot: in recent days, its price climbed above $4,300, reaching its highest level since December 2021.

The impressive growth of the cryptocurrency market has been driven by rising interest from major investors. Companies specializing in accumulating digital assets have so far purchased BTC worth $113 billion. Similar firms working with Ethereum have accumulated around $13 billion.

"Bitcoin's growth is supported by a steady influx of institutional investment into corporate treasuries and US exchange-traded funds. A significant factor is the shift in sentiment following the US introduction of new tariffs on imported gold bars," said Rachel Lucas, crypto analyst at BTC Markets. "With a shortage in gold supply and rising political risks, Bitcoin's role as a borderless, tariff-free store of value is becoming increasingly attractive to investors."

Willy Woo: Bitcoin could become the ideal asset of this millennium

Given the current circumstances, many experts are reassessing the role of the first cryptocurrency globally. According to Bitcoin investor Willy Woo, the flagship cryptocurrency could become "the ideal asset for the next thousand years." However, Woo noted that Bitcoin is unlikely to rival the U.S. dollar or gold without a significant increase in investment.

At present, Bitcoin's market capitalization stands at $2.42 trillion — less than 11% of gold's $23 trillion capitalization — while the US money supply is $22 trillion, according to the Federal Reserve Bank of St. Louis.

Woo believes Bitcoin will not become a global reserve asset for two reasons. First, there are risks associated with treasury Bitcoin-holding companies, which accelerate adoption but disclose little about their debt structures. This could lead to a "bubble burst" and significant losses for investors. A similar approach is already being used by altcoin treasuries, creating the risk of a new bubble.

Second, Bitcoin is becoming concentrated in the hands of governments through spot Bitcoin ETFs and pension funds, which opt for custodial solutions rather than self-custody. "Large-money investors don't store BTC themselves. They gain exposure through ETFs or companies like Strategy. This opens the door to the risk of a state-level rug pull," Woo warned.

Bitcoin could drop to $117,000 soon

The current volatile environment carries significant risks. Against this backdrop, some forecasts suggest BTC could fall to $117,000. This view is shared by Coinbureau CEO and co-founder Nic Puckrin and weRate co-founder Quentin Frenkos.

The reason crypto community members expect a decline is a gap on the BTC futures chart on the CME, which formed between $117,000 and $119,000. Puckrin and Frenkos believe this range will become a problem area for the first cryptocurrency.

A "gap" on a Bitcoin futures chart is the price difference between the closing of one candle and the opening of the next, when the opening price is significantly higher or lower without trades in between.

On BTC futures charts, gaps most often appear on CME (Chicago Mercantile Exchange) because trading pauses over the weekend (Saturday–Sunday), while the Bitcoin spot market operates 24/7. Historically, most such gaps "close" — meaning the price eventually returns to the gap zone — within days or weeks. As a result, many crypto traders view a gap as a signal for an imminent BTC correction.

Citi: S&P 500 Target Raised on Strong Corporate Earnings

A positive factor for the global market came from Citi's currency strategists, who forecast a potential rise in the S&P 500 index. According to experts, tax cuts should offset the negative impact of tariffs on US companies. Against this backdrop, Citi raised its year-end 2025 target for the stock index from 6,300 points to 6,600 points. The S&P 500 is expected to climb to 6,900 points by mid-2026.

Citigroup Inc. strategists revised their S&P 500 forecast upward, noting that tax reductions may counterbalance tariff pressures on US businesses. The optimistic outlook was also supported by better-than-expected earnings results. The absence of evidence that tariffs are harming macroeconomic data contributed to new market records.

According to Bloomberg Intelligence, more than 81% of S&P 500 companies beat earnings estimates — the highest percentage in the past seven quarters.

Citi analysts described the results as "impressive" and raised their consensus earnings-per-share (EPS) forecast. Meanwhile, a Bank of America Corp. survey showed that a record 91% of fund managers consider US stocks overvalued — the highest reading in the survey's 24-year history.

Still, many investors hope that tax breaks and Federal Reserve interest rate cuts will support equities. Notably, market participants have mostly invested in large-cap technology stocks, leading to extreme concentration of returns in the S&P 500 index.

Citi currency strategists also increased their EPS forecasts for S&P 500 companies — from $261 to $272 for 2025, and from $295 to $308 for 2026. Higher earnings projections should support the market, with the index expected to reach 6,900 points by mid-2026, almost 8% above its current level.