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.

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