Bitcoin Surges 7% to New All-Time High of $118,403.89 on Institutional Demand

Bitcoin has recently achieved a new all-time high, surpassing $118,000, driven by strong institutional accumulation and a steady increase in its value. The cryptocurrency's price reached a fresh record high of $118,403.89, up from a 24-hour low of $110,660.75. This rally is fueled by growing institutional interest and the maturation of the Bitcoin market.

The leading cryptocurrency's ascent could be much slower than previous cycles. This is due to the growing options market and the increasing sophistication of traders. As the asset matures, it is unlikely to boom as quickly as before. Experts suggest that the slow and steady grind higher is sustainable, unlike a massive, bubble-like rally. As Bitcoin grows in market cap, it takes more money to move it around, indicating a more stable and mature market.

Bitcoin's realized volatility is now 29.5%, far off 2021's 100%. The derivatives market indicates why. In 2021, the options market was considerably smaller, hitting a peak in October of that year of over $15 billion. In May, BTC open options contracts surged to over $42.5 billion on Deribit. Now traders are now buying Bitcoin via the new exchange-traded funds—approved last year—and using trading features on them. Investors with a lot of BTC are able to sell call options—contracts betting on the future price of an asset—adding liquidity to the market. Volatility decreases as sophisticated traders using this strategy sell options not expecting big price moves. Traders more widely than adjust their expectations and bets accordingly.

The asset is now attracting a more mature class of investor with institutional capital hitting the Bitcoin space, mainly through the new ETFs. Bitcoin spot ETFs pulled in $1.17 billion on Thursday, their second-biggest day since their debut in January 2024, led by BlackRock, Fidelity, and ARK Invest. On Friday, they remained strong, with about $1.03 billion worth of inflows. Still, Bitcoin's dramatic swings may not vanish completely. Experts suggest that price surges from now might "be locked into a tighter time period."

Michaël van de Poppe, a prominent analyst and trader in the cryptocurrency markets, suggests that Bitcoin could potentially rise further after reaching a new record high. According to van de Poppe, Bitcoin might see an increase of up to 112% by the end of the year’s fourth quarter. In his social media post, van de Poppe indicated that Bitcoin could reach $125,000 by July and possibly exceed $150,000 by the end of September. The analyst sets a price target of $250,000 for Bitcoin in the fourth quarter of 2025, implying an approximate increase of 112%. However, van de Poppe cautions that this rise will not be immediate, suggesting that short-term price movements might stagnate. “We will likely pause for a while, then continue.” — Michaël van de Poppe

Van de Poppe’s analysis also touches upon Ethereum, the second-largest digital asset by market capitalization, indicating a positive outlook. The analyst suggests that Ethereum could reclaim its previous all-time high levels. “We saw a steep upward candle. Now, some patience, then we’re headed towards all-time highs.” — Michaël van de Poppe. Ethereum continues to trade at $2,980 during the reported period, rising approximately 20% in the past seven days yet remaining 40% below its record high from four years ago.

The cryptocurrency analyst further mentions the potential end of the declining trend of altcoins against Bitcoin. Van de Poppe notes that on the weekly chart, altcoins are showing positive divergence against Bitcoin, which may indicate that they are nearing a bottom. Such positive divergence occurs when indicators like the relative strength index rise despite a decline in an asset’s value. This formation is often deemed the start of a market change or recovery.

The discussion also emphasizes the overall risks in the market and the necessity for investors to conduct their own research. Making investment decisions requires personal evaluation and a cautious approach, as sudden price movements can impact investors. Current trends in the cryptocurrency markets highlight significant fluctuations in the price movements of major digital assets like Bitcoin and Ethereum. According to the analyst’s predictions, upward movements might persist for Bitcoin and altcoins in the coming months. Still, the inherent uncertainties in the market and the need for investors to assess situations on their own are frequently stressed by many experts. This reinforces the importance of market monitoring and analysis for those planning investments.