Bitcoin Surges 100% to $118,000 on Institutional Inflows

Bitcoin has recently experienced a significant surge, reaching an all-time high above $118,000. This remarkable rise is primarily driven by substantial inflows from traditional financial institutions, including a notable $85 billion from new investments. The cryptocurrency's ascent is further bolstered by institutional buying and growing regulatory optimism, as investors increasingly view Bitcoin as a safe-haven asset.

The recent surge in Bitcoin's price has been particularly pronounced during policy deliberations, with investors pouring into ETFs. This influx of capital has pushed Bitcoin's market dominance to 63.9%, reflecting a strong capital rotation back to the leading cryptocurrency. The growing interest from institutional investors has reinforced Bitcoin's position as a secure and long-term store of value, especially in times of global macroeconomic uncertainty.

The current resurgence in Bitcoin's dominance echoes historical cycles, where the cryptocurrency's market share has fluctuated based on investor sentiment and the emergence of new altcoins. In December 2013, Bitcoin controlled an astonishing 87.4% of the market, during a time when there were fewer altcoins and minimal institutional presence. However, the 2018 market landscape saw that dominance drop drastically to 33.4%, fueled by the ICO bubble that diverted capital into speculative altcoin projects. Today's rising dominance suggests a strong capital rotation back to Bitcoin, likely driven by investor preference for security, simplicity, and long-term store-of-value properties.

A major factor fueling Bitcoin’s dominance is the influx of institutional investment. Financial giants continue to expand their BTC holdings. Meanwhile, Bitcoin ETFs have logged over $1 billion in weekly inflows—a historic first that shows deepening interest in digital assets. This rising institutional demand is reinforcing Bitcoin’s position as a safe-haven asset. Unlike previous cycles driven by retail euphoria, the current rally is supported by structured investment products, regulatory clarity in major jurisdictions, and nation-state level accumulation of Bitcoin reserves.

According to recent interpretations of the Livermore Accumulation Cylinder model, Bitcoin has entered stage 8 of its cycle, often referred to as the “Supercycle.” This phase is characterized by explosive price growth, driven not just by retail investors, but by nation-states, corporations, and sovereign wealth funds accumulating BTC to hedge against inflation and diversify treasury reserves. This supercycle model suggests that the accumulation phase is over and Bitcoin has entered a sustained period of exponential growth. This view is supported by current on-chain metrics and ETF inflows that indicate steady long-term buying pressure, even during short-term price dips.

Countries around the world are beginning to treat Bitcoin as a strategic reserve asset, much like gold. Some jurisdictions have already initiated Bitcoin-backed treasury programs, aimed at insulating national economies from fiat currency volatility. This kind of sovereign demand is less susceptible to market fluctuations and creates a powerful foundation for long-term price stability. Similarly, corporations are diversifying into Bitcoin as part of treasury management strategies, often replacing part of their dollar reserves with BTC. These moves reflect a broader shift toward viewing Bitcoin as an inflation-resistant, borderless asset that offers liquidity, security, and high potential returns.

With Bitcoin currently dominating nearly two-thirds of the total crypto market, and signs pointing to more upside in the coming months, the narrative is clear: Bitcoin is not only surviving the altcoin surge—it’s thriving. Analyst predictions, institutional inflows, and structural adoption trends all point to a potential second leg of Bitcoin dominance heading into Q4 2025. For investors, this means Bitcoin remains the center of gravity in crypto—the benchmark, the store of value, and increasingly, the unit of account in a maturing digital economy.