NEW YORK – Bitcoin has surged to a new all-time high, climbing above $118,000, as investor sentiment strengthens amid growing optimism over upcoming crypto-friendly policy developments in the United States.
The digital currency’s rally has been fueled by record-breaking inflows into Bitcoin exchange-traded funds (ETFs), with over $1.18 billion pouring in just last Thursday—marking the highest single-day total to date.
Short Squeeze and Institutional Demand Power Rally
Analysts attribute the sharp price surge to a large-scale liquidation of short positions worth over $1 billion, as Bitcoin decisively broke past the previous resistance level of $111,000. At the same time, long-term investor confidence continues to build, with ETF inflows for the year exceeding $51 billion.
Shares of crypto-exposed firms also gained momentum:
- MicroStrategy rose by 3%,
- Riot Platforms, Hut 8, and Marathon Digital Holdings saw gains between 1% and 4%.
Regulatory Tailwinds Boost Confidence
Market sentiment is also being driven by anticipation of the upcoming “Crypto Week” in Washington D.C., where the U.S. Congress is expected to deliberate key legislation. Among the proposed bills are:
- The Genius Act,
- The Clarity Act, and
- The Anti-CBDC Surveillance State Act.
The Trump administration has signaled support for the crypto sector, further bolstering investor enthusiasm with moves like endorsing a strategic bitcoin reserve and promoting digital asset innovation.
Volatility Remains a Risk
While the rally has sparked bullish forecasts across the crypto landscape, experts caution that volatility may persist. The market’s sharp rise, fueled in part by short squeezes and speculative momentum, could lead to correction phases in the coming weeks.
Bitcoin’s rapid rise also pushed other cryptocurrencies higher, including Ethereum, XRP, and Solana, all of which registered notable gains.
This story has been reported by PakTribune. All rights reserved.