Bitcoin Extends Record-Breaking Rally; Investors Pour Billions into ETFs

The original cryptocurrency traded at $118,005 as at 06:12 UTC on 11 July, accompanied by the heaviest daily trading volume since 21 May. This surge reflects growing institutional appetite for digital assets amid an increasingly favorable regulatory environment.

“Crypto Week”

Bitcoin owners have had a good ride since the November US election ushered in a new era for crypto in the world’s largest economy. The momentum continues to build as the House of Representatives in the US Congress designated 14 July as the start of “Crypto Week,” during which lawmakers will advance multiple pieces of legislation aimed at legitimizing digital assets for institutional investors and supporting American business goals.

Financial markets have been recovering from a slump in April when the US President introduced a raft of trade tariffs that turned out to be part of a ploy to support negotiations rather than serious policy measures. Stocks have also recovered – the MSCI All Country World Index of equities is still trading just below its 4 July peak.

BTC drivers

Beyond the White House rhetoric, a wave of corporate initiatives is fueling current interest in Bitcoin. Dozens of companies have introduced new corporate treasury strategies this year – essentially raising capital to acquire Bitcoin and certain other crypto assets in the expectation that their price will go up – and a spate of initial public offerings (IPOs) of crypto-related firms have also enticed institutional investors to the market.

The scale of institutional demand was highlighted on 10 July, when Bitcoin exchange-traded funds (ETFs) recorded net inflows of $1.18 billion—the highest single-day figure since 7 November. This surge in ETF activity underscores the growing mainstream acceptance of Bitcoin as a legitimate asset class.