Bitcoin Hits $118K: What’s Fueling This Unstoppable Rally?
- Bitcoin hits $118K as institutional inflows push it to a new all-time high.
- Over $589M in leveraged BTC positions liquidated amid intense market volatility.
- U.S. policy shifts and ETF demand fuel growing investor confidence in Bitcoin.
Bitcoin (BTC) recorded a high on Friday, marking a new all-time high of $118K. As of press time, BTC is trading near the ATH of $118,196.52, and the price keeps rallying upwards. The pioneer cryptocurrency has surged over 5% in the past 24 hours and 7% in the past week.
Hype is not all that makes this a record-breaking rally. The recent rise in Bitcoins has been driven by strong institutional flows and significant policy changes in the crypto policy of the United States.
Coinglass data proves a sharp increase in the market activity. The daily trading volume had increased by 46.19% to reach $138.61 billion. Open interest also increased by 4.47%, amounting to $82.39 billion.
On the other hand, volatility is still at a very high level. Over the last 24 hours, Bitcoin liquidations soared above $606.08 million, out of which $586.84M in short positions and $19 million in long positions. This clearly indicates the prevailing bullish sentiment and the market surprised the bears with an upside rally.
Source: Coinglass
Institutional Bets and U.S. Policy Fuel Bitcoin’s Rise
A key driver of this surge has been spot Bitcoin ETFs, especially in the United States. BlackRock’s IBIT led the way with a $125 million net inflow on Wednesday. Corporations such as Strategy have expanded their BTC holdings, which currently stands above 597,000 BTC.
Political developments in the U.S. are adding fuel to the rally. President Trump’s executive order in March to create a strategic cryptocurrency reserve changed market sentiment significantly. His administration’s appointment of crypto-friendly figures, such as SEC Chairman Paul Atkins and tech investor David Sacks as AI advisor, has strengthened confidence in a regulatory shift.
Adding to the momentum is the upcoming “Crypto Week,” announced by the House Committee on Financial Services. Starting July 14, this initiative will spotlight pro-crypto legislation, including the GENIUS Act. Investors expect that these moves will create a more predictable environment for digital assets.
Related: U.S. Senate Shifts Focus to Crypto Market Structure in Regulatory Push
The wider crypto market is responding in a favourable manner. Market cap increased by 4.87% over the last 24 hours and is currently at $3.64 trillion. The wave of optimism is reaching not only Bitcoin but also other assets. This indicates the broader optimism in the future of the digital economy, particularly as the policies are becoming more evident.
Traders Eye $120K as Bitcoin Breaks Key Technical Levels
Sentiment in the market also indicates bullish speculations. As per the data fetched from the prediction site Polymarket, 71% of traders are betting that Bitcoin will reach a high of $120,000 in July, and 18% are predicting the value to raise upto $130,000. These figures paint a bullish picture and the market’s confidence in this digital asset.
Source: Polymarket
Bitcoin’s record-breaking surge is more than just a headline—it marks a turning point in the asset’s journey from speculation to legitimacy. Backed by institutional capital and growing policy support, Bitcoin is now positioning itself as a serious, long-term fixture in the global financial system. What was once dismissed as a fad is now shaping the future of money.
The post Bitcoin Hits $118K: What’s Fueling This Unstoppable Rally? appeared first on Cryptotale.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Hashrate orders are booming, why is "AI trading" falling out of favor? JPMorgan reveals the time lag between AI investment and productivity realization
Joseph Lupton from the JP Morgan Global Economic Research Team pointed out in a research report on November 10 that recent improvements in labor productivity have been driven more by capital deepening and increased intensity of factor utilization. The broad efficiency gains from AI, resulting from process reconstruction, data integration, and organizational adjustments, will still take time to materialize. This means orders for chips, servers, and electrical equipment may grow first, but continuous investment returns for computing power operators and end users may not arrive at the same pace.
AI investment enters the "Trough of Disillusionment", the next 18 months will be a life-or-death test!
Goldman Sachs believes that the AI investment cycle is currently in the "trough of disillusionment," but this is not the first time. The core contradiction lies in the fact that the business models of new cloud computing providers are highly dependent on end-user returns from AI spending, while currently "there are basically zero companies that can attribute profits to AI." Social Capital founder Palihapitiya has clearly defined an 18-month key window, during which the market will decide which AI business models are sustainable and which are not.
Anthropic's Core Concern: Revenue Can Be Withdrawn at Any Time, but Computing Power Costs Are Locked in for up to 20 Years
Zheshang Securities believes that Anthropic's revenue is mainly based on usage-based billing, with remaining performance obligations covering only about 5.1 months of annualized revenue, while compute power costs are already locked in with $895.4 billion in irrevocable commitments, some extending as far as 2045. Revenues can be reduced at any time, but costs are non-exitable, creating a highly asymmetric maturity gap between the two—this is the company's real core constraint.
Triple Pressure from the Federal Reserve, Treasury, and Congress; Goldman Sachs: Liquidity Crisis May Occur in 2027
Goldman Sachs warns that the reserve ratio of bank assets has dropped to around 11%, only slightly above the crisis trough of 2019. In the second half of 2027, a deadlock in debt ceiling negotiations will force the Treasury to rebuild the TGA, triggering a "perfect storm" of a sharp drop in reserves and a surge in T-bill supply; combined with stalled money market fund buying, this will create a huge liquidity black hole. The Federal Reserve could be forced into the awkward position of lowering interest rates and launching large-scale bond purchases to rescue the market.
Crypto prices
More
