Bitcoin's price surged to a new record high on Friday, driven by increasing institutional investments and aggressive short liquidations.
Institutional Investments and the Bitcoin Market
Bitcoin's price climbed over $118,000 amid strong institutional demand and aggressive short liquidations. On July 10, bitcoin ETFs saw a total net inflow of $1.17 billion, led by BlackRock’s ETF with a $448.5 million influx.
Reasons for Growing Interest in Bitcoin
These significant investments strengthened market momentum as traditional institutions ramped up participation in crypto. The market experienced over $1 billion in liquidations, with $570 million coming from Bitcoin’s short positions.
Financial Conditions and Market Sentiment
Macroeconomic factors also contributed to the surge, with U.S. national debt nearing $37 trillion alongside a weakening dollar. Public figures, such as Elon Musk, voiced support for Bitcoin, further boosting market sentiment.
Bitcoin's price rise is attributed to strong ETF inflows, heavy short liquidations, and growing distrust in fiat currencies. As institutional demand continues to rise, the digital asset is solidifying its position as a preferred store of value.
