Bitcoin Rallies 10% to $118,000 as Institutional Investors Drive Demand

Bitcoin (BTC) has experienced a pause in its rally, with the price stabilizing around $118,000 over the weekend. The cryptocurrency reached a record high of $118,856 on Friday, marking an unprecedented surge. As of Monday, BTC was trading around $117,903, having dipped to a low of $117,101 earlier in the day before recovering.

Investors are looking ahead to a crucial week, with several key developments on the horizon that could significantly impact the crypto market. The US House of Representatives is set to debate several crypto bills, including the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act. These legislative actions could provide the regulatory framework that the crypto industry has long sought, potentially attracting new investment and capital into the asset class. President Trump has also expressed support for the crypto industry, urging lawmakers to draft favorable policies and rules for the sector.

Robert Kiyosaki, author of the best-selling Rich Dad Poor Dad, has reiterated his investment philosophy, emphasizing the importance of patient and informed investing decisions. Kiyosaki recently purchased Bitcoin at $110,000, entering what investors call the “Banana Zone,” an explosive phase of upward price action driven by retail frenzy. He believes that true gains come from waiting for the right entry points and avoiding the pitfalls of market timing.

Despite Bitcoin's consecutive highs this week, retail investors appear to be notably absent from the market. Demand for spot Bitcoin ETFs has surged, with inflows of over $1 billion recorded on Thursday and Friday, indicating that the rally is being driven primarily by institutional investors. Some market watchers speculate that retail investors may feel they have missed the opportunity to enter the market at a lower price point, leading to hesitation in participating in the current rally.

Bitcoin's rally has been part of a broader trend of investors embracing risk assets, driven by growing institutional interest and acceptance of digital assets like Bitcoin as a legitimate asset class. Inflows and market trends have pushed BTC past $118,000, with over $1.4 billion in short positions liquidated. Major industry figures have predicted further upside, stability, and more institutional buying as Bitcoin treasury companies continue to acquire the asset. Analysts expect bullish momentum to continue, with BTC potentially pushing higher in the coming days. Favorable macroeconomic developments next week could drive the price beyond $120,000.

BTC's price movements over the past week have been volatile, with significant fluctuations observed. On Wednesday, BTC registered a substantial increase, rising nearly 3% to $108,845. The price continued to push higher on Thursday, reaching an intraday high of $110,583 before settling at $109,637. However, it dropped 1.41% to $108,097 on Friday. BTC recovered over the weekend, registering a marginal increase on Saturday and then rising almost 1% on Sunday to settle at $109,231. Despite the positive weekend, BTC was back in the red on Monday, dropping nearly 1% to $108,273. The price recovered on Tuesday, rising almost 1% to $108,942. Buyers retained control on Wednesday as BTC rose over 2% to cross $111,000 and settle at $111,255. Bullish sentiment intensified as the price rallied 3.51% to $115,159 on Thursday, setting a new all-time high. BTC raced past $118,000 on Friday, setting another all-time high before settling at $116,885. BTC’s rally paused on Saturday as it registered a marginal decline and settled at $116,616. The current session sees BTC up almost 1%, trading around $117,200.