Bitcoin flies to new all-time highs, topping $118,000 as institutions pile into ETFs

Bitcoin has reached unprecedented levels, surging past $118,000 as institutional investors flock to cryptocurrency exchange-traded funds (ETFs). On Friday, the leading digital currency saw an increase of 4%, peaking at $118,396.01, as reported by Coin Metrics. Earlier, it even touched $118,872.85. Meanwhile, Ethereum also experienced a significant uptick, climbing nearly 7% and surpassing the $3,000 mark for the first time since February. The surge in Bitcoin's price coincided with an impressive inflow into Bitcoin ETFs, registering $1.18 billion on Thursday—the highest for 2025. Ethereum ETFs were not far behind, marking their second-largest inflow day ever with $383.1 million, according to data from SoSoValue. The bullish momentum initially gained traction on Wednesday after the release of the Federal Reserve's minutes, which revealed differing opinions among officials regarding potential interest rate cuts. Markus Thielen, CEO of 10x Research, noted that the tech stock rally also contributed to Bitcoin's rise, emphasizing that the cryptocurrency hit its first new record since May 22. This increase is expected to persist, especially with speculation that the next Fed leader may adopt a more dovish approach. Thielen also highlighted that discussions surrounding the budget deficit, particularly the “One Big Beautiful Bill Act,” could serve as a favorable catalyst for Bitcoin's growth. Since April 17, Bitcoin ETFs have seen inflows approach nearly $16 billion, a trend that accelerated after President Donald Trump suggested that a change in leadership at the Federal Reserve might be necessary due to its monetary policy. The latest price surge has triggered a substantial wave of short liquidations, with over $650 million in Bitcoin and more than $215 million in Ethereum being liquidated in just the past 24 hours. When traders short sell using leverage and the price rises, they often rush to buy back the cryptocurrency to close their positions, further inflating its price. As it stands, Bitcoin is on track for an impressive nearly 10% gain for the week, while Ethereum has risen over 20%.