Bitcoin Price Surge: Record Highs Fueled by Institutional Demand
Bitcoin soared to fresh all-time highs on Friday, briefly touching $118,872 before settling around $117,955, according to Coin Metrics. The flagship cryptocurrency is experiencing a strong upward trend, largely driven by institutional investment through exchange-traded funds (ETFs). Thursday marked the biggest day of ETF inflows in 2025, with a staggering $1.18 billion injected into Bitcoin funds, signaling renewed institutional confidence.
Ethereum Breakout: ETH Reclaims $3K
Ethereum also joined the rally, rising more than 6% to cross $3,000 for the first time since February. The move follows $383.1 million in inflows into Ether ETFs on Thursday—their second-largest daily total in 2025. Ether’s recovery reflects a broader trend of investor enthusiasm and suggests the crypto rally is not limited to Bitcoin alone.
Bitcoin ETFs: Accelerating Inflows Since April
Institutional inflows into Bitcoin ETFs have gained serious momentum since mid-April, when rate cut expectations and political developments began influencing sentiment. Since then, nearly $16 billion has flowed into Bitcoin ETFs. The recent $1.18 billion daily inflow marks a new high, showing just how much confidence institutional players now place in Bitcoin as a digital store of value.
Crypto Rally: Weekly Performance Highlights
Bitcoin is on track to gain nearly 10% for the week, marking its best weekly performance since April 25. Ether is faring even better, up over 21% on the week and heading for its strongest showing since early May. Other major altcoins have also joined the uptrend, with XRP up 8.6%, Dogecoin climbing 10.2%, and Cardano jumping 15.8%, according to CoinGecko.
Federal Reserve and Macro Outlook: Catalysts for Bitcoin
The rally picked up pace after the release of the Federal Reserve’s July meeting minutes, which revealed internal divisions over the pace of rate cuts. Markets responded positively, expecting a more dovish stance from the next Fed chair. Analyst Markus Thielen noted that macro policies, including the anticipated “One Big Beautiful Bill Act,” could expand the deficit and serve as a tailwind for Bitcoin’s growth narrative.
Liquidations: Short Sellers Crushed
The price surge triggered over $550 million in Bitcoin short liquidations and another $195 million in Ether shorts within 24 hours, according to CoinGlass. As Bitcoin and Ethereum rose sharply, traders betting against them were forced to cover their positions, which further pushed prices higher in a classic short squeeze scenario. This cascade of liquidations highlights the high-stakes nature of leverage in crypto markets.
Institutional Sentiment: Crypto as a Treasury Asset
Investor expectations are shifting, with Bitcoin increasingly viewed as a legitimate treasury reserve asset. Corporations have resumed accumulating BTC on balance sheets, and institutional buying continues to grow amid broader anticipation for favorable crypto legislation in the U.S. Many analysts believe that new all-time highs will continue in the second half of 2025, barring any major macroeconomic shocks.
Market Outlook: Crypto Entering a Bullish Cycle
With both Bitcoin and Ethereum breaking key psychological levels, analysts see the market entering a new bullish cycle. ETF inflows, macroeconomic tailwinds, and regulatory clarity all point to continued strength. Still, caution remains, especially given the summer slowdown in equity markets and lingering uncertainty around Federal Reserve policy. For now, however, the trend remains bullish with no immediate signs of reversal.
