Bitcoin surged to a new all-time high on Friday, fueled by increasing institutional demand and favorable regulatory signals from the Trump administration.
The world’s largest cryptocurrency climbed as much as 3.9% during the Asian trading session, reaching a peak of $116,781.10, before settling at $116,563.11. Year-to-date, Bitcoin is up more than 24%.
Market analysts attribute the rally to large-scale accumulation by institutional investors, which has tightened supply and reduced liquidity across exchanges.
“Major players are scooping up supply and drying up liquidity on exchanges,” said Joshua Chu, co-chair of the Hong Kong Web3 Association.
The rising momentum coincides with a broader surge in risk assets and a series of crypto-friendly moves from the Trump administration. In March, President Donald Trump signed an executive order establishing a strategic reserve of cryptocurrencies. His administration has also appointed officials viewed as favorable to the industry, including Securities and Exchange Commission Chair Paul Atkins and White House technology advisor David Sacks.
Trump’s family businesses have shown interest in the crypto sector as well. A recent SEC filing revealed that Trump Media & Technology Group is seeking to launch a cryptocurrency exchange-traded fund (ETF) that includes Bitcoin among its holdings.
The Bitcoin rally has had ripple effects across crypto markets and derivatives platforms. According to data from Coinglass, over $1 billion in short positions were liquidated in the past 24 hours as the price surge caught many traders off guard. Open interest on the Deribit exchange has become concentrated around Bitcoin call options with $115,000 and $120,000 strike prices. Longer-term contracts expiring later this year show significant positions at $140,000 and $150,000.
Meanwhile, Ether (ETH), the second-largest cryptocurrency by market value, also experienced strong gains. Ether rose by as much as 6.4%, briefly touching $2,999, its highest level in five months. The price movement was supported by heavy inflows into US-based spot Ether ETFs, with $383 million added in a single day—the second-highest daily total on record. Open interest in Ether futures on the CME Group also hit an all-time high, underscoring institutional interest.
Investor sentiment has been bolstered by expectations that a second Trump presidency would continue to favor digital asset growth through relaxed regulatory oversight. A Congressional committee has declared the week of July 14 as “Crypto Week,” highlighting growing political focus on the sector.
“The options market is reflecting renewed bullish conviction,” said Chris Newhouse, director of research at DeFi trading firm Ergonia.
The positive funding rate in Bitcoin perpetual futures suggests continued demand for long positions, further signaling bullish sentiment.
According to Mauricio Di Bartolomeo, co-founder and CSO of crypto finance firm Ledn, a new wave of treasury-focused companies is emerging, aiming to place Bitcoin directly on their balance sheets. These firms may issue shares or debt to acquire digital assets, effectively becoming proxies for Bitcoin investment in traditional equity markets.
Despite macroeconomic uncertainties—including potential trade tariffs expected from the Trump administration in August—some investors are turning to Bitcoin as a hedge.
“Institutions are treating BTC as a macro hedge and a maturing asset class,” said Roshan Roberts, CEO of trading platform OKX US. “July will test markets, but Bitcoin looks built for it.”
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