Bitcoin (BTC) Price Prediction: BTC to Hit New All-Time Highs as Institutional Demand Surges

The biggest reason for Bitcoin's recent rise is the large flow of money into US-based spot Bitcoin ETFs.

Bitcoin price rose sharply this week, continuing last week’s breakout from the flat trading range and reaching a new high of $111,954. It had held strong around the $102,000 level last week, and its rise was driven by several factors. Technical indicators showed an ongoing upward trend, while more interest from big investors and positive regulatory news flowed through. Moreover, better overall economic conditions also supported the cryptocurrency’s rally.

Institutional Demand Is Key to Bitcoin’s Recent Rise

The biggest reason for Bitcoin’s recent rise is the large flow of money into US-based spot Bitcoin ETFs. BlackRock’s iShares Bitcoin Trust ETF (NYSE:IBIT) has become the largest institutional Bitcoin fund in the world, now holding over 636,000 BTC.

Major financial firms like JPMorgan, Fidelity, and Charles Schwab are now including Bitcoin in their client portfolios, highlighting a shift from viewing Bitcoin as a speculative asset to using it as a strategic reserve tool.

In addition to this, ongoing Bitcoin purchases by Strategy and large buys by Japan-based Metaplanet are other key factors that are aiding in propelling the cryptocurrency price upwards.

Trump’s Crypto Approach Supports Uptrend

This year, US President Donald Trump’s “Strategic Bitcoin Reserve” decree, which recognized Bitcoin as a strategic national asset alongside gold, was well received by the market.

Moreover, the first “Crypto Summit” at the White House demonstrated strong political support for crypto assets.

The bipartisan compromise on stablecoin regulations shows that the US is moving to establish clearer laws for the crypto sector. This measure boosts investor confidence and reduces the perceived systemic risk.

Macro Developments Increase Risk Appetite

Positive global signals, such as Trump postponing tariffs for 90 days and the US-UK trade deal being finalized, encouraged investors to shift towards riskier assets. This development helped Bitcoin to break through the psychological barrier of $100,000 this month.

As Bitcoin price rose, the total cryptocurrency market cap reached $3.5 trillion. However, it still falls short of the $3.7 trillion record from December 2024, indicating that altcoins have underperformed compared to Bitcoin.

On-Chain Data Shows Profit Selling Levels

CryptoQuant data reveals that 4,435 BTC moved to Binance after yesterday’s record high, suggesting that short-term traders might be preparing to sell their profits.

Despite this, the 30-day net flow to crypto exchanges remains negative, indicating that long-term investors are holding onto their investments.

Other on-chain indicators, such as the realized cap ratio and dormancy, show some selling pressure. However, the intensity is weaker than last year’s profit-taking activities, which supports the view that the upward trend could continue.

Record Open Positions in Futures and Options

CoinGlass data shows that open positions in the Bitcoin futures market have topped $80 billion, reaching record levels. This finding suggests that many investors are expecting prices to keep rising.

However, high leverage could trigger sudden liquidations if a correction occurs, potentially making price drops steeper.

In the options market, Deribit reports over $5 billion in open positions between $110,000 and $130,000. The put/call ratio for about $2.76 billion of contracts expiring today is above 1, signaling that short-term selling pressure is increasing.

Bitcoin’s Technical Outlook

Bitcoin paused briefly between $102,000 and $106,000 last week during its steady climb. At the start of the new week, it tested the $106,000 resistance, bounced off the $102,000 support level, and surged higher with strong buying from that zone.

The upward trend continued throughout the week but slowed near the $111,000 mark. Still, technical signals suggest more gains ahead. The next target range on the daily chart lies between $114,600 and $125,400, with $114,000 expected to be a key resistance level soon.

Support Levels and Possible Pullbacks

After easing during last week’s brief consolidation, the Stochastic RSI has turned upward again, reinforcing the uptrend with technical support. The short- and medium-term exponential moving averages (EMAs) have remained positive since the trend reversal in April.

There isn’t strong resistance up to the $114,000 level, although profit-taking might trigger a pullback, increasing the chance of a trend backtest. In this case, the 8-day EMA around $108,000 could provide support for short-term dips. If the decline extends to $106,000, a short-term correction lasting