Bitcoin Breaks Records: Summary
On July 11, 2025, Bitcoin achieved a historic milestone by surpassing the $118,000 mark for the first time. This surge is attributed to significant capital inflows into specialized exchange-traded funds (ETFs) and increasing demand from corporations accumulating cryptocurrency. The overall crypto market capitalization reached $3.66 trillion, reflecting a 5.7% increase in just 24 hours, as it approaches the previous record high of $3.72 trillion set in December.
Market Dynamics
The rise in Bitcoin's price is supported by a robust global risk appetite, which has also positively impacted altcoins. Ethereum, for instance, briefly exceeded the $3,000 mark, marking its highest level since early February. Analysts suggest that if Ethereum follows its historical patterns, it could consolidate around $3,300 and $4,000 in the near future.
Institutional Involvement
There is a notable shift in the ownership dynamics within the cryptocurrency market. In 2020, a significant majority of Bitcoin was held by miners and anonymous wallets, but now approximately 25% of Bitcoin is owned by institutional investors. This transition has led to a more stable market, as the movement of cryptocurrency becomes increasingly limited.
ETF Inflows
The inflow into spot Bitcoin ETFs in the United States has been remarkable, continuing for six consecutive trading sessions and for 21 of the last 22 days. On July 10, net inflows into these ETFs reached $1.18 billion, marking the highest inflow in history. Since the approval of Bitcoin ETFs in January 2024, total inflows have surged to $51.34 billion, surpassing the $51 billion threshold for the first time.
Market Sentiment
Market analysts view this achievement as a pivotal moment in the institutionalization of Bitcoin as an asset class. The growth is primarily driven by stable demand from asset managers and corporations rather than retail investors. Additionally, a rise in the 'Coinbase premium' indicates increasing demand from American investors, further solidifying the bullish sentiment in the market.
Conclusion
As Bitcoin continues to break records, the broader cryptocurrency market is experiencing a revival, with altcoins gaining momentum. The combination of institutional investment, ETF inflows, and a favorable market environment suggests that the bullish trend may persist, with Bitcoin potentially targeting new heights above $135,000 in the near future.