Bitcoin Closes Week at Record High $109,263 on Institutional Flows

Bitcoin started the week near its record high, with the cryptocurrency closing at $109,263 on Sunday, marking its highest-ever weekly finish. This surge was driven by strong institutional flows and bullish momentum, following a rebound from late-June profit-taking. The move was supported by net inflows of $667 million into spot bitcoin ETFs, indicating robust demand despite quieter trading volumes around the Fourth of July holiday in the US.

The market is now focused on upcoming macro events, including the June CPI and PPI reports, which are expected to provide clarity on the inflation path and the Federal Reserve's stance for the remainder of 2025. Over the past few weeks, the consensus has shifted towards two rate cuts being the most probable outcome over three. However, rates markets are currently pricing in minimal odds of a July move, with growing debate over whether any cuts can occur before the end of the year. Additionally, the Trump administration has hinted at postponing its tariff implementation deadline to August.

On the policy front, US lawmakers are preparing for a series of votes related to digital asset markets. Starting July 14, House Financial Services Chair and House Agriculture Chair will plan votes on the Digital Asset Markets Clarity Act and the GENIUS Act, also known as the stablecoin bill. The Senate Banking Committee is also set to hold a hearing on July 9, titled “From Wall Street to Web3: Building Tomorrow’s Digital Asset Markets,” featuring testimony from industry leaders.

Beyond policy developments, the Fourth of July holiday saw significant onchain activity. Approximately 80,000 BTC, worth over $8.6 billion today, held in untouched wallets dating back to 2011, suddenly moved for the first time in over 14 years. Four of the eight known addresses transferred 40,000 BTC onchain, marking one of the largest-ever awakenings of “ancient” coins. Blockchain watchers noted that none of the BTC was sent to exchanges, alleviating concerns of an immediate sale. Instead, the coins were migrated from old legacy addresses to modern Bech32 formats, enhancing security and reducing future transaction fees. Bitcoin’s price remained stable despite this movement.

Analysts have proposed various motivations for this movement, including inheritance planning and consolidation under safer custody. Some have even speculated about longer-term implications for Bitcoin’s quantum resistance. Charles Guillemet, chief technology officer at a hardware wallet maker, observed that OP_RETURN messages were sent to the same dormant wallets days earlier, claiming legal possession and demanding proof of ownership by October. This could have prompted the real owner to proactively move funds as a safeguard. Additionally, there is a gray market economy around old wallet.dat files, which could be unlocked through modern techniques, potentially explaining the movement of these coins.