Historic! Bitcoin Hits a New Global Record

Bitcoin reached a historic milestone on Friday, surging past $118,000 and reaffirming its place as the world’s top digital asset. The leap wasn’t just impressive — it was symbolic. In less than 48 hours, the cryptocurrency gained more than 12%, propelled by a trifecta of factors: massive ETF inflows, a short squeeze, and growing institutional confidence. Data from CoinMarketCap showed Bitcoin trading at $118,245 around 11 a.m. ET, with 24-hour volume exceeding $110 billion. The price spike sent the broader crypto market into bullish territory, sparking new debates on how high Bitcoin could go before its next correction.

Institutional Demand Fueled by Spot ETFs

The clearest driver behind the price rally is the recent surge in spot Bitcoin ETFs. After months of steady growth, inflows exploded this week, with over $1.2 billion added on Thursday alone, according to data from BlackRock and Fidelity.

Them market analysts say the inflows represent a strategic shift among institutional players who now see Bitcoin as a credible, long-term asset class.

“We’re witnessing a rotation from traditional assets into Bitcoin,” said Michael Dawson, a strategist at NYDIG. “It’s become digital gold, and these flows reflect a long-term commitment.”

Short Squeeze Sparks Acceleration

Adding fuel to the rally was a massive short squeeze. As prices broke above $112,000, thousands of short positions were liquidated across global exchanges, triggering a cascade of forced buying.

More than $600 million in short positions were wiped out over the past 24 hours, according to Coinglass. The forced buybacks further accelerated Bitcoin’s climb.

“It’s the kind of movement that resets resistance levels,” said Alicia Menendez, chief analyst at Decrypt Research. “Crypto markets are hyper-responsive to liquidity shocks, and we’re seeing one play out now.”

On-Chain Metrics Support the Rally

Blockchain data also backs the bullish narrative. Exchange inflows — typically an indicator of selling pressure — dropped 17% over the last week, suggesting holders are moving coins to cold wallets and waiting for further gains.

Additionally, the MVRV ratio (Market Value to Realized Value) suggests Bitcoin is not yet in overbought territory. The widely-followed Pi Cycle Top model now forecasts a potential rally to $172,000 before the current cycle peaks.

Regulatory Clarity Boosts Market Confidence

Despite political uncertainty in Washington, the U.S. crypto regulatory landscape has grown more favorable. A newly passed bill provides clearer rules for asset custody, taxation, and compliance — bringing much-needed structure to the space.

Them experts believe that regulatory clarity is a major green light for larger institutions.

“For the first time, we have an understandable rulebook. That’s game-changing for pension funds and insurers,” said Sarah Blake, compliance director at ChainBridge Capital.

What Comes Next for Bitcoin?

Now that Bitcoin has smashed through $118,000, market attention shifts to the next key psychological barrier: $120,000. Many analysts believe the momentum remains strong enough to push higher, especially if trading volumes remain elevated.

However, caution flags remain. A surprise signal from the Federal Reserve or sudden sell-offs from whale wallets could trigger temporary pullbacks.

Still, sentiment remains bullish. A recent CoinDesk poll of over 3,000 traders revealed that 72% expect Bitcoin to finish July above $125,000.