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Bitcoin Surges Past $118,000 on Strong ETF Inflows

Bitcoin soared to a new all-time high above $118,000 on Thursday, propelled by surging inflows into exchange-traded funds (ETFs) and renewed interest from institutional investors. The rally underscores Bitcoin’s growing appeal as both a hedge against inflation and a key component in diversified investment portfolios.

The world’s leading cryptocurrency briefly touched $118,200 during early U.S. trading hours before consolidating just below that level. This marks Bitcoin’s highest valuation ever, breaking its previous record set just weeks earlier, and signaling strong upward momentum in the crypto market. Investing.com

ETF Inflows Drive Momentum

Fueling the surge are record-breaking inflows into spot Bitcoin ETFs, which have attracted billions in capital from retail and institutional players alike. Analysts say the accessibility of ETFs is reshaping the landscape for crypto investing, allowing traditional investors to gain exposure without directly holding digital assets.

“The ETF mechanism has unlocked a fresh wave of demand,” said one market strategist. “It’s helping Bitcoin establish itself as a mainstream asset class.” Outlook Money

BlackRock, Fidelity, and Ark Invest’s crypto-linked ETFs have seen significant volume increases over the past two weeks. This inflow trend has helped tighten supply on major exchanges, further accelerating price gains.

Institutional Demand and Macro Tailwinds

Institutional investors are once again stepping into the market, driven by expectations that the Federal Reserve could pivot to interest rate cuts in the coming months. The weakening dollar and persistent inflation concerns have positioned Bitcoin as a favored store of value—echoing the “digital gold” narrative. The Economic Times

Additionally, U.S. fiscal policy moves, including rising debt ceilings and increased public spending, have heightened concerns over long-term currency stability, prompting some investors to shift capital into hard assets like Bitcoin.

Technical Picture Remains Bullish

From a technical perspective, Bitcoin’s breakout above $115,000 triggered a wave of short liquidations and buy-side volume. Momentum indicators suggest the trend remains bullish, though analysts caution that consolidation is likely in the near term.

The Relative Strength Index (RSI) is nearing overbought territory, signaling the potential for short-term cooling before the next leg higher. Still, many expect continued gains if ETF flows remain strong and macro conditions stay supportive.

 

 

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