#BTC Hits New High#  Bitcoin's peak discovery: $118,000 surpassed

Bitcoin continued its rise in the early hours of the day, reaching a record high of $118,300 by the last hour. The world's largest cryptocurrency, which gained 6.5% in 24 hours, attracted the attention of investors and analysts. Ethereum also saw an 8.67% increase in the same period, pushing its price to the $3,000 range.

This rise is driven by increased institutional interest and positive market signals. Some experts argue that Bitcoin's new high signals a potential major bull market for the sector. In recent days, calming macroeconomic conditions and institutional adoption appear to have rekindled interest in Bitcoin.

Institutional demand strengthens, spot Bitcoin ETFs see record inflows

Institutional investor interest in the cryptocurrency market is increasing. On Thursday, $1.18 billion inflows were recorded in spot Bitcoin ETFs alone. This was the second-highest daily inflow since the ETFs launched. Such movements indicate that investors view Bitcoin as a long-term, regulated asset.

This surge is widely believed to be driven by institutional buying triggered by expectations of a US interest rate cut. Furthermore, many companies, like Strategy, are now incorporating Bitcoin into their strategic asset allocation plans. Increased accessibility, coupled with ETF approvals, is among the key factors driving Bitcoin to new heights.

Macroeconomic developments and regulations are driving the market.

While tariff risks remain a key short-term concern, increasing talk of an early interest rate cut is ensuring strong institutional adoption. Bitcoin's role in portfolio diversification is increasing, and demand for spot Bitcoin ETFs is expected to remain strong in the medium term.

Furthermore, recent regulatory actions appear to have positively impacted Bitcoin. Developments such as the US GENIUS Act and the removal of tax burdens on crypto brokerage firms have lowered barriers for institutional investors, accelerating entry.

Liquidity Wave and the Options Effect

This shift in market structure is supported by lower-cost price appreciation expectations driven by low implied volatility levels. The failure of large investors to increase their positions sufficiently after the option expiration in June also played a role in the sudden surge. The sharp move in Bitcoin prices sparked a race to reposition positions.

Over $1.14 billion in leveraged positions were liquidated in the last 24 hours. $1.02 billion of these liquidations came from short (sell) positions. Bitcoin was the most affected cryptocurrency, with $599 million in liquidations. $243 million in Ethereum positions were closed. Smaller tokens like Solana, Hyperliquid, and XRP also experienced significant liquidations.

Trump Administration's Crypto-Friendly Steps

Bitcoin's recent rally is also being influenced by political developments from another perspective. Former President Donald Trump signed an executive order in March directing the creation of a national crypto reserve. The appointment of pro-crypto figures like Paul Atkins to the SEC and the prominence of figures like David Sacks in AI policy have positively impacted market sentiment.

Trump-affiliated companies are also making new moves in the crypto space. Trump Media & Technology Group (DJT) has filed for a crypto ETF that will hold various cryptocurrencies, including Bitcoin. These developments indicate an increasingly favorable political climate for crypto and growing investor confidence.