Bitcoin Hits New Record Amid ETF Inflows

Bitcoin’s recent rally continued on Friday, marked by significant inflows into Bitcoin ETFs, pushing its price to a new all-time high. According to Coin Metrics, Bitcoin’s value rose by 4%, reaching $118,396.01, after briefly touching $118,872.85. Ether also saw a boost, climbing nearly 7% to surpass the $3,000 mark for the first time since February.

This Thursday was notable, as Bitcoin ETFs experienced their largest single-day inflow of 2025, totaling $1.18 billion. Meanwhile, Ether ETFs saw their second-highest influx, attracting $383.1 million.

Interestingly, the rally had a more measured start on Wednesday, following the release of the latest Federal Reserve minutes. A resurgence in tech stocks supported Bitcoin, which marked its first new record since May 22. CEO Markus Thielen of 10X Research mentioned, “That’s when we really started to get the top range,” and remarked on a possible shift in the Federal Reserve’s stance that could benefit Bitcoin. He alluded to a significant budget bill that might escalate the federal deficit, presenting a potential positive catalyst for cryptocurrency.

The theme of Fed Independence has surfaced since around April 17, a time when Bitcoin ETFs saw rising inflows. Notably, President Trump had suggested that a change in Federal Reserve Chair Jerome Powell’s position might be warranted, given the central bank’s current approach to interest rates. Since then, inflows have soared to nearly $16 billion.

This week’s momentum triggered a substantial wave of short liquidations. In just 24 hours, Bitcoin experienced over $650 million in short liquidations, along with more than $215 million in ether. When traders leverage their positions and the price climbs, they are compelled to return Bitcoin to the market to settle their positions, further driving the price upward.

So, looking at the week as a whole, Bitcoin is on track for nearly 10% gains, while ether has surged by over 20%.