Bitcoin Surges to New All-Time Highs, Briefly Surpassing $118,000 Amid Institutional ETF Inflows
July 11, 2025 — Bitcoin extended its remarkable rally on Friday, reaching unprecedented heights as institutional investors eagerly poured capital into bitcoin exchange-traded funds (ETFs). The flagship cryptocurrency briefly touched an all-time intraday peak of $118,872.85 before settling slightly lower, still marking a robust 4% gain at around $117,955, according to data from Coin Metrics.
This breakout came on the heels of the largest day of bitcoin ETF inflows recorded in 2025, which totaled an impressive $1.18 billion. Ether ETFs also posted substantial interest, registering their second-largest influx ever with $383.1 million in new money, based on figures from SoSoValue.
Strong Weekly Gains for Bitcoin and Ether
Bitcoin is on track to close the week with nearly a 10% increase, its best performance since late April. Meanwhile, Ether—the second-largest cryptocurrency by market capitalization—jumped 6% on Friday, comfortably reclaiming the $3,000 threshold for the first time since February 2025. Ether’s weekly gains exceed 21%, marking its strongest week since early May.
Market Drivers: ETF Demand and Federal Reserve Signals
The recent momentum gained traction midweek after the release of Federal Reserve meeting minutes revealed internal disagreements among officials over the pace of upcoming interest rate cuts. This uncertainty, coupled with a contemporaneous upswing in technology stocks, helped bitcoin break past resistance levels to reach new highs.
Markus Thielen, CEO of 10x Research, noted that expectations for a more dovish Fed leadership transition have helped fuel optimism in the crypto markets. “It’s expected that whoever comes in to lead the Fed next will adopt a dovish stance,” he said. Thielen also referenced the anticipated passage of the “One Big Beautiful Bill Act,” a legislative package forecasted to widen the federal deficit—a factor historically perceived as bullish for bitcoin.
Short Squeeze Amplifies Price Surge
As bitcoin rallied, a wave of short liquidations accelerated the ascent. Over the past 24 hours, more than $550 million in short positions on bitcoin and approximately $195 million on ether were forcibly closed. In leveraged short trades, rising prices compel traders to buy at higher prices to cover their positions, creating additional upward price pressure.
Broader Institutional Adoption and ETF Inflows
The current rise in inflows into bitcoin ETFs traces back to mid-April, when inflows began ramping up significantly. This surge in demand coincided with public commentary from former President Donald Trump, who suggested that Federal Reserve Chair Jerome Powell’s removal might be warranted due to the rate policy stance. Since then, total ETF inflows have approached $16 billion.
Investors are broadly betting on renewed all-time highs for bitcoin in the latter half of 2025, buoyed by increasing corporate treasury acquisitions and the progress of federal cryptocurrency regulations. According to Thielen, barring any major macroeconomic shocks, bitcoin’s trajectory remains upward.
“Powell might turn dovish at the upcoming Fed meeting, or he might not,” Thielen said. “Given the typical summer slowdown in risk appetite among long-only equity investors, the market remains somewhat short-term oriented for now, with limited macro catalysts during this period.”
Looking Ahead
As of this week, bitcoin’s nearly 10% gain and ether’s 21% advance underscore a bullish phase for cryptocurrencies, fueled primarily by sustained ETF inflows and favorable macroeconomic developments. Industry watchers will be closely monitoring the Federal Reserve’s next moves, congressional crypto legislation, and continuing institutional activity to gauge whether the rally can maintain its strength moving forward.
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