Bitcoin (BTC) has surged nearly 7% this week, trading above $107,300 as of Friday’s reporting—just shy of its all-time high of $111,980 reached in May 2025. This rally is fueled by a confluence of positive macroeconomic developments, growing institutional adoption, and shifting regulatory sentiment. With momentum building, many investors are asking: Is a new record imminent?
Global Risk Appetite Rises Amid Geopolitical Calm
The week began on a bullish note as global risk sentiment improved dramatically. A key catalyst was the announcement by former U.S. President Donald Trump of a “complete and total” ceasefire between Iran and Israel—effectively halting a 12-day conflict. The news triggered a broad-based rally across risk assets, including equities, commodities, and cryptocurrencies.
Bitcoin responded swiftly, rebounding from Sunday’s low of $98,200 with a 4.33% gain and closing Monday above $105,000. Momentum continued into Tuesday after Trump confirmed via Truth Social that the ceasefire was now in effect and urged both nations to uphold it. By Wednesday, BTC had climbed past $107,000—a level it has maintained through Friday.
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This reduction in geopolitical tension has helped ease market volatility and encouraged capital rotation into higher-risk assets. As uncertainty recedes, investor confidence grows—providing fertile ground for Bitcoin’s price ascent.
Institutional and Corporate Demand Remains Strong
Beyond sentiment shifts, fundamental demand drivers are reinforcing Bitcoin’s upward trajectory.
Corporate Accumulation Accelerates
Several publicly traded companies significantly increased their Bitcoin holdings this week:
- Strategy, Metaplanet, and Blockchain Group collectively purchased 1,431 BTC on Monday.
- ProCap BTC, LLC, led by Anthony Pompliano, acquired 3,724 BTC following a $1 billion merger announcement and over $750 million in new funding.
- The same firm added another 1,208 BTC on Wednesday, bringing its total holdings to 4,932 BTC.
- Metaplanet further boosted its position by acquiring an additional 1,234 BTC on Thursday, reaching a total of 12,345 BTC.
These strategic purchases signal strong conviction among corporate treasuries about Bitcoin’s long-term value proposition as a hedge against inflation and monetary debasement.
Bitcoin Spot ETFs See Record Weekly Inflows
Institutional demand remains robust through regulated vehicles like spot Bitcoin ETFs. According to SoSoValue data, net inflows into U.S.-listed Bitcoin spot ETFs have been positive for 13 consecutive days since June 9.
As of Thursday, weekly inflows totaled $1.71 billion—the highest since late May when Bitcoin hit its previous all-time high. This surge in capital deployment suggests sustained appetite from institutional and retail investors alike.
Continuous inflows not only validate the ETF structure but also reduce circulating supply, potentially amplifying upward price pressure if demand persists.
Regulatory Tailwinds Boost Market Confidence
Regulatory developments this week provided additional tailwinds for the crypto market.
Fed Removes “Reputation Risk” from Bank Exams
On Monday, the Federal Reserve announced it would no longer include “reputation risk” as a formal supervisory criterion in bank examinations. Previously, this vague classification—dubbed “operational choke point 2.0”—discouraged traditional banks from offering custody services or banking support to crypto firms.
The move signals a more balanced and pragmatic regulatory approach, potentially paving the way for broader financial integration of digital assets. While the Fed emphasized that banks must still maintain strong risk management practices, the shift removes a major barrier to institutional participation.
Senator Cynthia Lummis welcomed the change: “This is a victory—but there’s still more work to do.”
FHFA Explores Crypto as Collateral for Mortgages
In another landmark development, Federal Housing Finance Agency (FHFA) Director William Pulte announced plans to evaluate the use of cryptocurrencies as qualifying assets for mortgage underwriting.
“After extensive research and aligned with President Trump’s vision to make America the global crypto capital, I’ve directed Fannie Mae and Freddie Mac to prepare to accept crypto as collateral,” Pulte stated on X.
While implementation details remain pending, this proposal could revolutionize access to homeownership for crypto holders and further legitimize digital assets within mainstream finance.
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Macroeconomic Signals Favor Risk Assets
Broader economic indicators are also aligning in favor of risk-on behavior.
- The 2-year Treasury yield dipped below 4%, reflecting rising expectations of future rate cuts by the Federal Reserve.
- Despite mixed signals—such as a downward revision in Q1 GDP to -0.5% (from -0.2%)—the labor market showed resilience with initial jobless claims falling to 236K.
- However, continuing claims rose to 1.974 million—the highest since November 2021—highlighting underlying fragility.
- The dollar remains near multi-year lows, increasing appeal for alternative stores of value like Bitcoin.
All eyes are now on Friday’s release of the PCE Price Index, the Fed’s preferred inflation gauge. A softer-than-expected print could reinforce dovish expectations and provide further fuel for Bitcoin’s rally.
Jerome Powell’s cautious testimony before Congress this week drew criticism from President Trump, who publicly questioned his leadership and hinted at appointing a successor by September or October. Political pressure on the Fed may undermine its perceived independence, potentially weakening the dollar and boosting demand for decentralized assets.
Will Bitcoin Break Its All-Time High?
Bitcoin briefly dipped below $98,200 early in the week but avoided closing beneath the critical $100,000 psychological level. It quickly rebounded, reclaiming $107,000 by midweek.
Technical indicators suggest continued bullish momentum:
- The daily RSI stands at 56, above neutral 50, indicating strengthening upward pressure.
- The MACD generated a bullish crossover on Thursday, signaling renewed buying interest.
- A close above $111,980 could open the path toward **$120,000**.
- On the downside, key support lies near the 50-day EMA at $103,675, which could act as a floor during any pullback.
With strong fundamentals, favorable regulation, and improving technicals, the stage is set for a potential breakout.
Frequently Asked Questions (FAQs)
Q: What is a Bitcoin ETF?
A: A Bitcoin Exchange-Traded Fund (ETF) is an investment product that tracks the price of Bitcoin without requiring direct ownership. It trades on traditional stock exchanges and offers exposure to BTC’s price movements with added convenience and regulatory oversight.
Q: Are there spot Bitcoin ETFs in the U.S.?
A: Yes. The U.S. Securities and Exchange Commission (SEC) approved multiple spot Bitcoin ETFs in January 2025. This milestone allowed mainstream investors and institutions to gain regulated access to Bitcoin through familiar financial channels.
Q: What are the advantages of investing in a crypto ETF?
A: Key benefits include reduced custody risk, easier access via brokerage accounts, enhanced security through institutional-grade management, and lower entry barriers for novice investors.
Q: What are the drawbacks of crypto ETFs?
A: Investors don’t directly own the underlying asset (“not your keys, not your coin”), management fees can be higher than self-custodying, and price volatility of Bitcoin still affects ETF performance.
Q: How do regulatory changes affect Bitcoin’s price?
A: Positive regulatory developments—like clearer banking rules or approval of financial products—boost investor confidence and institutional adoption, often leading to increased demand and higher prices.
Q: Can macroeconomic factors influence Bitcoin?
A: Absolutely. Factors like interest rate expectations, inflation data, geopolitical stability, and currency strength directly impact investor risk appetite—making Bitcoin a sensitive barometer of macro trends.
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With corporate treasuries buying in bulk, regulators taking supportive stances, ETF inflows surging, and technical indicators flashing green, Bitcoin appears poised for another historic move. Whether it breaks past $112,000 or consolidates before doing so, one thing is clear: the momentum behind digital gold has never been stronger.