Bitcoin Surges Past $118,000 Amid Institutional ETF Inflows

Bitcoin has reached new heights, briefly exceeding $118,000 as institutional interest in bitcoin ETFs escalates. Huge inflows reflect a strong bullish sentiment in the crypto market.

Bitcoin Hits New Records Amid Institutional Interest

Bitcoin has soared to unprecedented heights, briefly surpassing $118,000 as institutional investment in bitcoin ETFs continues to surge. Just on Thursday, bitcoin ETFs recorded inflows of $1.18 billion, the largest single day for 2025. Meanwhile, ether ETFs also saw a notable spike with inflows of $383.1 million, marking their second-highest contribution ever, as reported by SoSoValue.

Recent Performance Highlights Bitcoin and Ether

As the week progresses, bitcoin is on track for a nearly 10% increase, marking its strongest performance since April 25. Likewise, ether has shown resilience with an impressive gain of more than 21%, making it the best week for ether since May 9. This resurgence in the cryptocurrency market has not gone unnoticed, as both investors and traders adapt to the swiftly changing landscape.

Cryptocurrency Prices Continue to Surge

Friday saw bitcoin extend its rally, with a reported increase of about 4% to reach $117,955.25 according to Coin Metrics. Earlier, the price briefly touched $118,872.85. Ether, not to be outdone, climbed 6%, breaking back above the $3,000 mark for the first time in several months – since February, to be exact.

Federal Reserve Meeting Sparks Market Movements

The rally appears to have gained momentum following the release of the Federal Reserve’s minutes, which unveiled differing opinions among officials regarding potential cuts in interest rates. Markus Thielen, CEO of 10x Research, indicated that the atmosphere around bitcoin began to shift positively around this time. “The expectation is that a new leader to the Fed will adopt a dovish approach,” he explained, linking market behaviour to the government’s current fiscal strategies and discussions about increasing the federal deficit.

Short Liquidations Push Prices Higher

This price surge triggered a massive wave of short liquidations across the market. Within just 24 hours, over $550 million worth of bitcoin shorts were closed, alongside $195 million in ether shorts. Short-selling can create a feedback loop; as prices increase, traders forced to buy bitcoin back can push the price even higher. This cycle is indicative of the larger shifts occurring with cryptocurrency trading.

Future Market Expectations for Bitcoin

Looking ahead, investors are optimistic about bitcoin reaching new all-time highs later this year. With many corporations ramping up their bitcoin purchases and potential crypto legislation inching closer in Congress, a macro event would be needed to suppress prices significantly. Thielen noted that potential dovish moves from Federal Reserve Chair Jerome Powell at the next meeting could play a significant role in shaping future market trends. However, he emphasised the necessity to remain cautious, especially over the summer months when overall market activity tends to slow.

In summary, bitcoin’s rise above $118,000 and the remarkable inflows into ETFs underscore a growing trend of institutional interest in cryptocurrency. Ether continues to follow suit, experiencing strong gains. Market dynamics are shifting under the influence of Federal Reserve policies and investor anticipation, suggesting further movement is on the horizon.