Bitcoin is currently trading around $117,000, nearly double its value from the same time last year. This sharp rise is drawing renewed attention, especially as institutional capital flows and regulatory developments in the U.S. begin to reshape the market landscape.
ETFs and Institutional Inflows
Over the past week, U.S.-listed spot Bitcoin ETFs attracted approximately $2.7 billion in net inflows, with one trading day alone reaching nearly $1.3 billion—among the largest daily inflows on record. BlackRock’s iShares Bitcoin Trust now manages close to $90 billion in assets, signaling growing institutional acceptance of Bitcoin as part of long-term portfolios.
According to Bitwise, the total value of Bitcoin held by public companies rose more than 23% in the last quarter, reaching $91 billion.
Treasury-Style Holdings and Reverse Mergers
Some companies—including Trump Media—have disclosed plans to accumulate large amounts of Bitcoin. Meanwhile, a number of reverse merger deals are being used to transform dormant companies into Bitcoin-holding vehicles. One example is ProCap, which recently raised $750 million and is aiming to hold up to $1 billion in Bitcoin.
Technical Factors and Derivatives Market
The expiration of June’s options contracts triggered a short squeeze, contributing to the recent price rally. The open interest in Bitcoin derivatives has surpassed $88 billion, reaching an all-time high and signaling strong activity from institutional traders.
U.S. Policy Developments: A Regulatory Shift?
The U.S. Department of Labor has approved 401(k) retirement funds to invest in Bitcoin ETFs, potentially opening access to digital assets for long-term retirement savings. In parallel, Congress is reviewing several key crypto-related bills that address:
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Jurisdictional division between the SEC and CFTC
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New regulations for stablecoins
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Limitations on central bank-issued digital currencies (CBDCs)
While these proposals don’t directly target Bitcoin, they are part of a broader effort to define regulatory boundaries in the digital asset space.
Conclusion
There is no single factor responsible for Bitcoin’s recent price surge. However, a combination of ETF inflows, institutional adoption, regulatory momentum, and technical market dynamics appears to be contributing to the current upward trend.