Bitcoin soared to an all-time high Friday, surpassing $118,000 as institutional investors poured money into crypto-linked exchange-traded funds ahead of a pivotal week for digital asset legislation on Capitol Hill. The flagship cryptocurrency climbed as high as $118,872.85 and was last trading up 3% at $117,297.10, according to Coin Metrics. Ether followed suit, rising nearly 6% to $2,976.90 after breaching the $3,000 mark for the first time since February.
Bitcoin ETFs registered their strongest single-day inflow of 2025 on Thursday, totaling $1.18 billion, according to SoSoValue. Ether ETFs saw $383.1 million in inflows, the second-highest daily haul on record. The rally intensified after minutes from the Federal Reserve's June meeting signaled division among officials on future rate cuts, fueling speculation of dovish leadership ahead.
"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, referring to the "One Big Beautiful Bill Act" expected to further widen the deficit-an environment often seen as bullish for bitcoin.
Bitcoin's rally was accompanied by more than $650 million in short liquidations over the past 24 hours, forcing leveraged traders to buy back into the market, further driving up prices. Ether saw $215 million in short liquidations over the same period.
The move higher comes as the House of Representatives prepares for what lawmakers are calling "Crypto Week," starting July 14, when three key bills-the Genius Act, the Clarity Act, and the Anti-CBDC Surveillance State Act-will be debated. These bills are expected to clarify U.S. digital asset regulation, long sought by industry leaders.
"We expect capital that was previously sidelined due to regulatory uncertainty to re-enter," said Jag Kooner, head of derivatives at Bitfinex. "Even if final passage stalls, the optics of legislative engagement are bullish."
Shares of bitcoin-exposed companies reacted in kind. Riot Platforms gained 2.5%, Mara Holdings rose 2.2%, and MicroStrategy, a major institutional bitcoin holder, climbed nearly 3%. Strategy, another large buyer, added 2.2%.
Dan Coatsworth, investment analyst at AJ Bell, said investors are "racing to take positions ahead of the extra publicity this event could attract." Bitcoin is up nearly 10% for the week and has surged 41% over the past three months.
