Bitcoin surges 10% to new record high of $118,000 on institutional investment wave

Bitcoin's price surged to a new record high on Friday, climbing past $118,000 amid a strong wave of institutional investment and aggressive short liquidations. The rally reflects growing investor confidence fueled by significant inflows into Bitcoin spot ETFs and rising skepticism toward traditional fiat systems.

On July 10, Bitcoin ETFs saw combined net inflows of $1.17 billion, with BlackRock’s IBIT leading the way with $448.5 million. Fidelity’s FBTC followed closely with $324.3 million, while ARK’s ARKB and Bitwise’s BITB added $268.7 million and $77.2 million, respectively. These large-scale investments reinforced market momentum as traditional institutions deepened their involvement in crypto.

The rally was further intensified by a sharp short squeeze that triggered over $1 billion in liquidations across the market. Bitcoin alone accounted for $570 million in short positions being wiped out, pushing the price even higher as traders rushed to cover their losses. Ethereum also experienced similar action, with $207 million in short liquidations and rising investor attention.

On-chain data pointed to heavy accumulation by large Bitcoin holders, suggesting that institutional players are preparing for further gains. The surge came just ahead of the expiration of over 37,000 Bitcoin options valued at $4.3 billion. These contracts had a max pain point of $108,000, and Bitcoin trading above this level added pressure on bearish traders.

Besides the technical drivers, macroeconomic conditions also played a role. The U.S. national debt is approaching $37 trillion, with lawmakers setting a new ceiling of $41.1 trillion. At the same time, the U.S. dollar has weakened despite no expected interest rate cuts, signaling investor concerns over economic stability. Public figures also added fuel to market sentiment. Elon Musk voiced support for Bitcoin during a recent event, stating his backing for alternatives to fiat currency through the new America Party. His comment further strengthened market optimism around Bitcoin’s long-term role in the financial system.

Bitcoin's price surge to new all-time highs is a testament to its growing acceptance as a mainstream investment asset. The cryptocurrency's resilience amidst broader financial market uncertainty, coupled with unprecedented institutional adoption and favorable regulatory policies, has driven its price to unprecedented levels. As the macroeconomic environment continues to evolve, Bitcoin is poised to benefit from the shifting investment strategies of financial advisors and institutional investors, potentially driving its price even higher in the coming years.