Bitcoin Soars Past $118K on ETF Demand, Pro-Crypto Trump Policies, and Institutional Momentum

Bitcoin (BTC) has hit a fresh all-time high of $118,310, surging 6.1% on Friday amid an avalanche of institutional interest, strong ETF inflows, and renewed optimism driven by U.S. President Donald Trump’s crypto-friendly policies.

Institutional Demand Fuels Bitcoin Rally

Bitcoin’s latest surge marks its third consecutive weekly gain, supported by growing enthusiasm from major asset managers and corporate treasuries. Spot Bitcoin ETFs in the U.S. witnessed $1.18 billion in net inflows this week alone, according to SoSoValue.

1. BlackRock’s IBIT led the inflow surge with $448.5 million

2. Fidelity’s FBTC and Bitwise’s BITB followed closely behind

3. Total daily trading volume across the 12 Bitcoin ETFs soared to $6.3 billion, the highest since May

These numbers underscore the rising appetite among institutional investors to add Bitcoin to both treasury portfolios and ETF holdings.

The trend accelerated after President Trump’s administration signaled support for digital assets, including the approval of a strategic Bitcoin reserve earlier this year.

Adding to the momentum, Trump Media & Technology Group (NASDAQ: DJT) has filed applications for three crypto-related ETFs, including a forthcoming "Crypto Blue Chip ETF" set to launch later this year.

Crypto Week and Pro-Crypto Legislation on the Horizon

Investors now turn their attention to “Crypto Week” beginning July 14, when U.S. lawmakers are expected to push forward at least three major bills regulating digital assets.

A favorable legislative outcome could further legitimize the market and invite more institutional players.

Altcoins Join the Rally

Bitcoin’s rally is pulling the broader market upward:

1. Ethereum (ETH) jumped 8.7% to $3,025

2. XRP rose 6.07% to $2.60

3. Cardano (ADA) surged 13.93% to $0.720

4. Solana (SOL) added 4.11% to $164.88

5. Polygon (MATIC) climbed 9%

6. Meme tokens like Dogecoin and $TRUMP rose 12% and 11%, respectively

Bullish Technical Indicators & On-Chain Data

Technical indicators suggest Bitcoin’s breakout is more than just a short-term rally:

1. 10x Research’s trend model turned bullish on June 29

2. Markus Thielen of 10x Research projects BTC could reach $133,000 by September, citing bullish momentum and underexposed option traders

3. RSI shows a bullish setup below overbought levels, allowing room for further upside

4. On-chain metrics from CryptoQuant show exchange inflows have fallen to 3,200 BTC/day, the lowest since 2015, indicating low sell pressure and high investor confidence

Meanwhile, wallet clusters between $108,795 and $110,624, representing nearly half a million BTC, form a strong support wall, enhancing Bitcoin’s stability near current prices.

Risks: Divergence & Fibonacci Levels

Despite the bullish environment, Relative Strength Index (RSI) divergence signals a need for caution.

RSI is showing lower highs while price makes higher highs, a classic sign of weakening momentum. However, as RSI remains below the overheated zone, the correction risk appears moderate.

Fibonacci trend extensions show next key resistance levels at:

1. $121,274 (0.618 level)

2. $135,576 (1.0 extension level)

3. $146,400 (based on chart breakout projection)

Support to watch includes $109,632, $107,000, and $100,000. Falling below these levels could invite a deeper correction, possibly echoing May’s dip to $98,000.

Institutional Accumulation Continues

Trading activity on Coinbase is dwindling, implying that large buyers are accumulating through spot ETFs rather than centralized exchanges.

This institutional behavior reinforces long-term bullish sentiment, especially as firms like Korea’s K Wave Media reportedly acquired 88 BTC as part of a $1 billion crypto treasury strategy.

Conclusion: Will Bitcoin Maintain the Momentum?

Bitcoin is currently up 1.47% over the last 30 days, holding well above its early April low and performing comparably to tech giants like Nvidia and Microsoft.

The combination of ETF demand, favorable U.S. policy, low sell pressure, and technical confirmation suggests that this rally may have further room to grow.

Still, traders should be alert to key resistance zones and potential corrections. The next few weeks, especially around Crypto Week and July 15’s CPI data, could be decisive in shaping Bitcoin’s path toward $133K or beyond.

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