BTC breaks through $122,000, institutional funds flowing in to drive the bull run

On July 14, a certain trading platform stated that Bitcoin has recently been on a strong rise, with prices breaking through $122,000, setting a new high. Technical breakthroughs and a large influx of institutional funds have become the main driving forces. The cryptocurrency fear and greed index has risen from 40 to 70 in three weeks, indicating that market sentiment has quickly shifted from "fear" to "greed."

Data shows that last week, the net inflow of spot Bitcoin ETFs exceeded 2 billion USD, indicating strong institutional participation willingness. Meanwhile, the leveraged long positions in perpetual contracts continue to increase, with the funding rate approaching 30%. The total amount of open contracts has surpassed 43 billion USD, marking one of the highest levels this year.

The options market is performing relatively rationally. Although spot prices continue to rise, the increase in implied volatility is moderate, reflecting a more mature market. The January risk reversal trend is stable, and the demand for call options in September and December is rising, indicating that the market tends to hedge against short-term volatility while maintaining a bullish outlook for the medium to long term.

Despite the strong performance of Bitcoin, caution is needed when chasing the rise in the context of high funding rates and existing liquidation risks. A strategy of waiting for a pullback may be more advantageous.