Bitcoin Shatters Records: Soars Past $118,000 in Historic Rally
Bitcoin just smashed through its previous ceiling, rocketing to an unprecedented $118,872 early Friday before settling near $117,955. This explosive move caps a week of relentless gains that saw the cryptocurrency surge 10%, marking its strongest performance since late April. The breakthrough comes amid massive institutional investments flooding into newly approved bitcoin funds and shifting U.S. political winds favoring digital assets.
What Fueled The Record Run
Three powerful forces converged to drive bitcoin's historic climb:
- ETF Firehose: Bitcoin ETFs absorbed a staggering $1.18 billion on Thursday alone - the biggest single-day inflow of 2025. Ether ETFs followed closely with $383 million, their second-largest haul ever.
- Short Squeeze Frenzy: Traders betting against bitcoin got crushed as prices surged, triggering $550 million in forced buybacks within 24 hours. This liquidation cascade amplified the rally as bears scrambled to cover positions.
- Washington Winds: President Trump's crypto-friendly policies and next week's critical "Crypto Week" congressional hearings have boosted confidence. Lawmakers will debate the GENIUS Act to regulate stablecoins - seen as the first step toward clearer industry rules.
Institutional Stampede Accelerates
Wall Street's embrace of bitcoin has intensified dramatically in 2025. Since mid-April, nearly $16 billion has poured into bitcoin ETFs as major firms like BlackRock and Fidelity expand crypto offerings. Corporate balance sheets are also loading up on bitcoin, with companies like Trump Media & Technology Group now seeking SEC approval for a "Crypto Blue-Chip ETF".
Bitcoin's correlation with tech stocks remains strong, with its surge coinciding with Nvidia's climb to a $4 trillion valuation and record highs for the Nasdaq. "Bitcoin has shown resilience rebounding in-line with its macro exposures," noted Citi analysts in a Friday research note.
What Seasoned Analysts See Next
Market experts highlight conflicting signals for bitcoin's trajectory:
"This rally has legs" - Markus Thielen, 10x Research CEO, points to Federal Reserve uncertainty and growing budget deficits as tailwinds. He cautions, however, that summer trading could see reduced momentum without major catalysts.
"$140,000 target in sight" - Gerry O'Shea, Hashdex Asset Management's global insights head, believes new institutional access points could propel bitcoin 20% higher this year despite macroeconomic uncertainty.
Critical Week Ahead for Crypto
All eyes turn to Washington next week as Congress debates landmark crypto legislation. The stablecoin bill represents regulators' first major effort to create guardrails for digital assets since bitcoin ETFs launched. Passage could accelerate institutional adoption and cement bitcoin's status as a macro asset.
Meanwhile, altcoins joined the party with ether crossing $3,000 for the first time since February. Solana, Cardano, and Dogecoin all notched 5%+ gains as crypto stocks like Coinbase and Robinhood surged 4%.
The Long-Term Horizon
While bitcoin remains volatile - briefly crashing below $75,000 in April after tariff announcements - its 2025 uptrend appears intact. The cryptocurrency has now held above $100,000 for over 60 consecutive days, signaling stronger institutional support during dips.
As traditional finance and digital assets become increasingly intertwined, bitcoin's record-shattering week may mark not just a price milestone, but a fundamental shift in global asset allocation.
