Bitcoin Shatters Records: Surges Past $118,000 as Institutional Demand Soars
Bitcoin has smashed through all previous price barriers, hitting a stunning new all-time high above $118,000. This historic rally is fueled by massive institutional investments flooding into Bitcoin ETFs and a major shift in global market sentiment. For everyday investors, this breakthrough signals crypto's growing power in mainstream finance.
ETF Firepower Ignites the Rally
Wall Street's embrace of Bitcoin is reshaping the market. BlackRock's iShares Bitcoin Trust (IBIT) just became the fastest ETF in history to hit $80 billion in assets – achieving in 374 days what took previous record-holders over 1,800 days. "This isn't just about Bitcoin – it's about crypto becoming a legitimate asset class," said Bloomberg's senior ETF analyst Eric Balchunas as total spot Bitcoin ETF assets crossed $140 billion.
Thursday saw a staggering $1.18 billion pour into these funds – the second-largest daily inflow since their January 2024 launch. This buying spree creates relentless upward pressure, with institutions vacuuming up available supply. Min Jung, analyst at Presto Research, confirms: "Companies are now incorporating Bitcoin into their core investment strategies, creating unprecedented demand".
Whales and Holders Double Down
While ETFs buy aggressively, long-term Bitcoin believers are hoarding coins. Data shows 74% of all Bitcoin is now held by "long-term holders" – the highest percentage in 15 years. These veterans refuse to sell even at record prices, locking up supply.
Simultaneously, Bitcoin whales moved nearly 9,000 BTC off exchanges last week alone. This signals big players expect further gains and reduce immediate selling pressure. Exchange reserves now sit at just 14.57% of circulating supply – near historic lows.
| Key Driver | Impact |
|---|---|
| Spot ETF Inflows | $1.18B single-day surge |
| Long-Term Holders | Control 74% of supply |
| Whale Activity | 8,740 BTC removed from exchanges |
Market Sentiment Turns Supercharged
Crypto's fear-and-greed index has flipped to "greed" mode as Bitwise's proprietary Cryptoasset Sentiment Index hits its highest level since May 2025. Traders are betting big on continued momentum, with technical charts suggesting $120,000 as the next resistance level.
Three powerful forces are converging to support prices:
- Declining inflation boosting risk assets
- Potential Fed rate cuts in July
- Record ETF inflows creating structural demand
What Comes Next?
Analysts see this breakout as just the opening act. "Bitcoin's current setup mirrors past bull cycles," notes market technician 0xNobler, pointing to compressed technical patterns that historically precede massive rallies. Some models suggest a run toward $300,000 is possible if momentum holds.
VanEck's Bitcoin ETF added $15.2 million in fresh inflows Friday, while continuing its unique pledge to donate 5% of profits to Bitcoin core developers – blending profit with ecosystem support. As Coinbase shares surge alongside Bitcoin, even traditional stock traders are using crypto-linked options strategies to ride the wave safely.
With miners producing just $48 million of new Bitcoin daily versus billions in ETF demand, the supply crunch is real. This breakthrough above $118,000 confirms crypto's new era – where institutions move markets and scarcity meets unprecedented demand.
