Bitcoin Hits New All-Time High $111,980, Institutional Investors Drive Rally

Bitcoin (BTC) has recently achieved a new all-time high (ATH) of $111,980 on a major crypto exchange, surpassing its previous ATH of $108,786 recorded in January 2025. This rally, however, is notably lacking in retail investor participation, a key driver of sustained bull markets in the past.

According to a recent analysis, retail activity during the current BTC rally is significantly lower than expected. Typically, new ATHs attract substantial attention from smaller investors, but this time, the retail demand has only seen a slight increase despite the price surge. This trend is evident in the transfer volume of BTC in the $0 to $10,000 range, which is a proxy for retail demand.

The current momentum appears to be driven primarily by institutional investors. For example, institutional heavyweight Strategy has been increasing its BTC holdings, approaching the 600,000 BTC mark. Historical patterns from the 2020–2021 bull run indicate that while institutional accumulation often initiates a rally, it is the retail investors who sustain it to new highs. Without significant retail volume, the current rally may face challenges in maintaining its momentum.

For BTC to continue its price expansion, a clear uptick in retail participation is necessary. Early signs of movement are visible, but a breakout has not yet occurred. If retail volume increases over the next few weeks, new ATHs could be just the beginning of a more sustained rally.

Recent flows from crypto exchanges show that BTC reserves are decreasing rapidly. For instance, a major US-based exchange recently saw a significant outflow of BTC, raising speculations that institutions are accumulating the digital asset in anticipation of its next leg up. Technical analysis also points toward BTC hitting another ATH soon, as it recently broke out of a double bottom pattern on the hourly chart, fueling hopes of a surge toward the $112,000 mark.

Whale behavior has been mixed, with short-term whales taking profits while long-term holders remain steadfast, showing minimal signs of selling. Despite this, BTC’s medium-term outlook remains overwhelmingly positive, with some researchers predicting a $200,000 price target by the end of 2025. At the time of reporting, BTC was trading at $108,802, down 0.6% in the past 24 hours.