Bitcoin surges past $118,000, rebounding from 2025 low of $74,508 amid renewed optimism

Bitcoin just won’t slow down.

The flagship cryptocurrency extended its rally late Thursday into Friday, breaking past $118,000 after spot bitcoin ETFs recorded their biggest inflow day of the year. According to Coin Metrics, Bitcoin was recently up 3% at $117,297.10, after briefly touching $118,872.85 overnight. Ether also caught a lift, climbing nearly 6% to $2,976.90 and cracking back above the $3,000 mark for the first time since February.

Meanwhile, Bitcoin has since pulled back slightly and is now trading around $117,000 at the time of writing.

The world’s most popular cryptocurrency just set a new milestone—climbing back up after hitting a 2025 low of $74,508 on April 7, when a tariff fallout triggered a crypto bloodbath and deepened the global trade rift.

Bitcoin isn’t rallying alone. Stocks tied to the crypto market are moving up, too. Marathon Digital (MARA) and Riot Platforms, two major bitcoin miners, gained 2.5% and 1.5%, respectively. MicroStrategy—often treated as a bitcoin proxy—rose nearly 3%. Trading platforms Coinbase and Robinhood also edged higher, each up about 1%.

ETF activity provided much of the fuel. On Thursday alone, bitcoin ETFs pulled in $1.18 billion, marking their strongest day in 2025 so far. Ether ETFs had their second-best day ever with $383.1 million in inflows, per SoSoValue, CNBC reported.

Momentum started building earlier in the week after the Federal Reserve released its latest meeting minutes. The key takeaway? Policymakers are split on how fast to cut rates, and that hint of dovishness combined with a tech stock rebound helped push bitcoin to its first new all-time high since May 22.

“That’s when we started to really take out the top range,” said Markus Thielen, CEO of 10x Research. “It’s expected that whoever comes in to lead the Fed next is going to be dovish. We also know, that saving the budget deficit has sort of been pushed under the rug,” he added, referencing the “One Big Beautiful Bill Act,” which is projected to raise the federal deficit—a potential tailwind for bitcoin in the eyes of some investors.

Why Bitcoin’s Surging in 2025

So what’s really driving the price action? It’s a mix of institutional hunger, limited supply, and a macro backdrop that’s pushing investors into alternative assets.

Wall Street wants in.

Big players like BlackRock, Fidelity, and MicroStrategy are scooping up bitcoin, mostly through spot ETFs. Since the 2024 U.S. election, ETFs have seen $3.4 billion in new flows. BlackRock’s iShares Bitcoin Trust alone has ballooned past $40 billion. When institutions buy in bulk, supply dries up, and prices climb.

There’s not much left to mine.

Bitcoin’s supply is capped at 21 million coins, and more than 94% have already been mined. After the halving event in April 2024, the number of new coins entering the market dropped again. That squeeze, paired with growing demand, helps explain the price surge.

Regulation is finally working for crypto.

The SEC’s green light for spot bitcoin ETFs in January 2024, followed by the approval of options contracts in October, opened the door to more mainstream investors. And with the Trump administration signaling pro-crypto policies—like the idea of a national bitcoin reserve—the market is betting on friendlier rules ahead.

Global economics are playing a part.

Bitcoin continues to draw buyers looking for a hedge against inflation, especially in places where local currencies are losing value. U.S. rate-cut expectations, paired with recent geopolitical stability (like the Israel-Iran ceasefire in June), have boosted appetite for risk—and bitcoin is riding that wave.

Hype and chart watchers matter too.

FOMO is back. As prices climb, bullish calls on social media and technical patterns like the “cup and handle” are drawing in retail investors. Speculation feeds momentum, and the feedback loop kicks in.

Tech upgrades aren’t being ignored.

Developers are still improving Bitcoin’s scalability and efficiency behind the scenes. It’s not the loudest factor, but it adds confidence for long-term holders.

That said, no rally is without risk. Bitcoin remains volatile, and sharp corrections still happen. Whales can move markets, long squeezes can trigger cascades, and FUD is always lurking. While sentiment is strong now, it’s still crypto.

Posts across social media also reflect the moment—optimism around ETFs and institutional buying, but also some caution as long-term holders start to take profits. Whether Bitcoin holds above $100,000 or slips back into consolidation will likely depend on what happens next with rate cuts, regulations, and, of course, the next tweet that moves the market.