Bitcoin Poised for Strong Weekly Gains, $2.7B ETF Inflows Fuel Rally

Bitcoin’s price is on track for its biggest weekly gain since Trump’s win, boosted by $2.68 billion in ETF inflows. It’s up 11% this week to around $95,000, with predictions suggesting potential highs above $130,000 by 2026. Market dynamics are shifting as BTC decouples from traditional assets, drawing institutional interest. Liquidity issues and volatility loom, yet optimism remains strong for future price increases.

Bitcoin has been making headlines as its price seems ready for the strongest weekly gain since Trump’s election back in November 2024. The cryptocurrency is riding high, currently sitting around $95,000, thanks to a recent 11% surge. This week’s performance has left market watchers buzzing about potential new record highs for Bitcoin, with predictions suggesting it could reach over $130,000 by late 2025 or early 2026.

As of Thursday, U.S.-listed spot Bitcoin ETFs have drawn in a whopping $2.68 billion in net inflows—marking the largest influx since December. These figures illustrate a strong rebound in investor interest, particularly among ETF investors. The cryptocurrency market is showing signs of vitality, as Bitcoin recorded a 1.8% increase within the past day, closely followed by Ethereum’s ether which nudged up by 2% to just over $1,800.

As mentioned by David Duong from Coinbase, Bitcoin is now decoupling from traditional assets like U.S. stocks and gold, making a statement about its evolving status as a store-of-value. This week’s movements could indicate a significant shift in market dynamics. Duong pointed out that this divergence highlights how Bitcoin is increasingly perceived as a resilient asset amidst wider economic fluctuations, both by institutions and retail investors.

In line with this, some major corporations are adopting Bitcoin into their treasury strategies, similar to Michael Saylor’s approach. New firms such as Twenty One Capital, with backing from prominent names like Tether and SoftBank, plan on holding significant Bitcoin reserves right from their launch.

However, things are still a bit dicey. Dr. Kirill Kretov from CoinPanel noted a significant liquidity drain in the BTC market. Many coins have been withdrawn from active transactions, leading to a thinner market which could result in volatile price swings. As Kretov points out, the market remains vulnerable to sizeable trades, with sharp price movements of around 10% likely to become more common.

The path ahead for Bitcoin seems promising yet uncertain. John Glover, from Ledn, believes that what we’re seeing now is just the beginning of Bitcoin’s next upward movement. Based on his analysis, he suggests that BTC has entered the final phases of its long-term bull market. While a retest of $75,000 isn’t off the table, Glover remains optimistic about prices potentially reaching the $133,000 to $136,000 mark by the end of this year or early next year.

The ongoing price rally is being reinforced by increased purchasing activity from Bitcoin whales, suggesting that large investors are back in play, buying into this bullish momentum.