Bitcoin Surges 5% to $110,125 as Institutional Investors Pour $500 Million into ETFs

Bitcoin (BTC) has surged past $110,000, marking a significant recovery from its recent drop. This surge has reignited market confidence, particularly among institutional investors who have been increasing their investments in ETFs, with inflows reaching $500 million in just one week. This renewed interest from institutional investors is a key driver behind Bitcoin's recent price surge.

On Monday, Bitcoin briefly reached $110,125 on major exchanges, representing a nearly 5% increase for the day. This breakout from the $95,000 to $100,000 range, where it had been stagnant for weeks, is largely attributed to the renewed interest from institutional investors. The improved economic outlook and changes in U.S. tariffs have encouraged big funds to increase their holdings. Additionally, the drop in the U.S. dollar index and the rise in tech equities have contributed to this bullish momentum.

Bitcoin is currently trading close to $109,800, just below the immediate resistance level of $112,500. Significant buying demand has built up around $107,000, which could act as a support level in the short term. The positive sentiment has also spread to other cryptocurrencies, with Ethereum (ETH) rising 5.2% to $4,850 and Solana (SOL) increasing 7.8% to $210. The trading volumes for both tokens have surged, with ETH's volume up 18% to $15 billion and SOL's on-chain transactions up 25% to 1.2 million. This broad-based surge indicates a "risk-on" cycle, where money is flowing into high-beta assets across the board, reflecting increased confidence in the crypto sector's short- to mid-term prospects.

Recent gains in crypto-related equities, such as Coinbase Global, which jumped 3.5% in pre-market trading, indicate that traditional financial markets are once again aligning with digital assets. The NASDAQ 100's 0.8% rise on the same day further supports this correlation. Additionally, Bitcoin ETF flows surged last week, with products from BlackRock and Fidelity seeing multi-million dollar net inflows. This influx suggests that institutions are positioning for higher prices ahead of the summer, especially as regulatory fears ease in the U.S.

On-chain data also supports the rally, with active BTC addresses rising by 9% over the past 48 hours. Miner outflows have decreased, signaling lower sell pressure, and exchange reserves are at a 2-month low, suggesting more HODLing behavior. Funding rates across major derivatives platforms have turned positive again, reflecting renewed bullish bets. Overall, Bitcoin's push beyond $110,000 has rekindled bullish sentiment across the crypto market. With strong ETF demand, rising altcoin volumes, and favorable macro trends, the stage appears set for a potential move toward $115,000, provided buyers can defend support. All eyes now turn to key resistance levels and institutional flows in the coming days.