Bitcoin surged to a new all-time high of $116,893 in early trade on Friday, driven by strong institutional inflows and optimism around crypto-friendly policies under U.S. President Donald Trump. The world's largest cryptocurrency has now gained more than 25% year-to-date and is up 102% over the past 12 months.
Ether, the second-largest cryptocurrency, also climbed over 7% to trade near $2,965 after touching a five-month high of $2,995. Other major altcoins joined the rally, including Dogecoin (+10%), Cardano (+10.5%), Solana (+4.6%), XRP (+6%), and Hedera (+12.2%).
“Bitcoin soared past $116,000, setting a new all-time high as bullish momentum returned following recent consolidation,” said Himanshu Maradiya, Founder and Chairman of CIFDAQ. “Institutional demand remains a major driver, with U.S. Bitcoin ETFs surpassing $50 billion in net inflows to date. BlackRock alone holds over $65 billion in BTC.
Investor confidence has also been supported by macroeconomic trends such as a weakening dollar, rising demand for treasuries, and growing interest in Bitcoin as a hedge against sovereign credit risk. The inclusion of Coinbase in the S&P 500 further underscores Bitcoin’s increasing acceptance as a mainstream asset.
The sharp breakout also triggered a massive short squeeze, contributing to the speed of Bitcoin’s ascent. “A sharp $453 million short squeeze played a key role in accelerating Bitcoin’s rally,” said Avinash Shekhar, Co-Founder & CEO of Pi42. “Forced buying from liquidated bearish positions added fuel to the upward momentum.
