Bitcoin Reaches Its Highest-Ever Weekly Close at $106,516

Bitcoin reached its highest-ever weekly close at $106,516 on May 18, 2025, sitting just 3% below its all-time high of $109,358 from January.

Bitcoin reached its highest-ever weekly close on May 18 at $106,516, sitting just 3% below its all-time high of $109,358 from January.

This marks Bitcoin’s sixth straight week of gains as institutional investments continue to pour into U.S. bitcoin ETFs and macroeconomic uncertainty drives new interest in the digital currency.

Major financial companies invested more than $608 million into U.S. spot bitcoin ETFs last week alone, according to data from Bitwise Asset Management. In the first half of May, total investments exceeded $2.8 billion, and ETF assets now exceed $122 billion.

Bitcoin’s close above $106,000 is a rare event in its history. According to on-chain researcher Dan, Bitcoin has closed above $106,439 only once before—making up just 0.02% of its trading history. Prices have exceeded $100,000 on only 40 days.

Bitcoin's price action might be following a pattern similar to November 2024, where the cryptocurrency experienced a rally of about $30,000 over three weekly periods. So far this month, Bitcoin has climbed roughly $12,000, moving from $94,000 to over $106,000 before settling around $105,400.

Bitcoin price action. Source: TradingView

The supply-demand imbalance is driving prices higher, according to Matt Hougan, Chief Investment Officer at Bitwise. Miners will produce only about 165,000 new bitcoins in 2025, but companies and ETFs have already bought more than that amount.

“BTC is now traded as the newest macro asset in 150 years, it’ll continue to absorb capital until it reaches equilibrium at the 8% growth rate with 3% economic growth and 5% money supply expansion,” wrote analyst Willy Woo on social media.

According to Woo, Bitcoin’s yearly growth rate might stabilize around 8% in the next 15 to 20 years. “Until then enjoy the ride because almost no publicly investable product can match BTC performance long term even as BTC’s CAGR continues to erode.”

The rally comes amid mixed economic signals. A temporary 90-day tariff reduction between the U.S. and China has helped somewhat, but high taxes remain on electric vehicles, computer chips, and consumer electronics.

The credit rating agency Moody’s recently downgraded the U.S. government from AAA to AA1, citing concerns over growing government debt and wider budget deficits.

With inflation worries still in the minds of investors, many seem to be turning to Bitcoin as a possible hedge against rising prices.

Bitcoin’s next major resistance level is breaking through its January peak of $109,358. However, analyst Bluntz has spotted a bearish divergence on the daily chart which could slow Bitcoin’s rise. This happens when price makes a higher high but technical indicators show weakening momentum, suggesting buying pressure might be fading despite the price rally.

Whether Bitcoin will keep climbing to new highs or face resistance at this point remains to be seen. For now, institutional investments and macroeconomic uncertainty are the main forces driving the market as more people start using cryptocurrency.