Bitcoin Soars to $118K: Institutions Fuel ETF Surge and New Highs
bitcoin Hits New Heights Amid Record ETF Inflows
bitcoin and Ether Surge to New Records
bitcoin experienced a significant surge on Friday, reaching unprecedented levels after exchange-traded funds (ETFs) dedicated to the cryptocurrency recorded their highest inflows of the year. The leading digital currency saw a 3% increase, bringing its price to $117,297.10, with earlier peaks reaching $118,872.85. Meanwhile, Ether also saw a notable rise of nearly 6%, trading at $2,976.90, and briefly surpassing the $3,000 mark for the first time since February.
Stock Performance of bitcoin-Related Companies
While bitcoin‘s price soared, stocks associated with the cryptocurrency market did not maintain their peak performance. Companies focused on bitcoin mining, such as Mara Holdings and Riot Platforms, saw gains of 2.5% and 1.5%, respectively. Additionally, MicroStrategy, a prominent bitcoin proxy, increased by almost 3%. Crypto trading platforms like Coinbase and Robinhood also experienced a 1% rise.
Major Inflows into bitcoin ETFs
On Thursday, bitcoin ETFs recorded an impressive $1.18 billion in inflows, marking the largest single-day influx of 2025. Ether ETFs followed suit with their second-largest inflow ever, totaling $383.1 million, according to data from SoSoValue. The upward trend for bitcoin began on Wednesday, coinciding with the release of the latest Federal Reserve meeting minutes, which revealed differing opinions among officials regarding interest rate cuts. This rally was further fueled by a rise in technology stocks, leading bitcoin to achieve its first new record since May 22.
Market Reactions and Short Liquidations
The recent price surge triggered a significant wave of short liquidations in the market. Over the past 24 hours, bitcoin experienced more than $650 million in short liquidations, while Ether saw over $215 million. When traders leverage short positions and the price of bitcoin rises, they are compelled to buy back bitcoin to close their positions, further driving up the price and leading to additional liquidations.
Anticipation of Future Market Movements
The theme of Federal Reserve independence has been prevalent among institutions since around April 17, coinciding with increased inflows into bitcoin ETFs. This uptick followed comments from former President Donald Trump suggesting that a change in leadership at the Federal Reserve might be necessary due to its stance on interest rates. Since then, total inflows have approached nearly $16 billion.
Investors are optimistic about bitcoin reaching new heights in the latter half of the year, driven by corporate treasuries ramping up their bitcoin acquisitions and Congress moving closer to enacting cryptocurrency legislation. According to Markus Thielen, CEO of 10x Research, only a significant macro event could hinder bitcoin‘s price trajectory.
Weekly Performance Overview
For the week, bitcoin is poised for a nearly 10% increase, while Ether has surged over 20%. As the market looks ahead, the potential for further gains remains strong, contingent on upcoming developments and macroeconomic factors.
