These are booming times in the cryptocurrency market, and it’s all being fueled by Bitcoin’s historic breaking of its all-time high watermark. Major inflows into Bitcoin ETFs are driving this rally. Now combine the aggressive political pressure to influence monetary policy with a growing, renewed confidence in digital assets. Ethereum, XRP and Dogecoin are just a few of the other cryptocurrencies making big moves this week, adding to the crypto market surge.

Bitcoin Breaks Records Amidst ETF Frenzy

Bitcoin’s price has broken the imagination. After that, it skyrocketed through the $110,000 resistance level, hitting an all-time high (ATH) just over $112,000. This milestone further highlights the growing institutional adoption and new retail enthusiasm returning to the crypto markets. The main culprit for this explosion are the record-breaking Bitcoin ETF inflows.

Since April 17th, Bitcoin ETFs have purchased an incredible $15 billion of Bitcoin. This buildup has put incredible buying pressure, pushing Bitcoin to new heights.

"The move in BTC prices +2.2% the last 24 hours is not particularly noteworthy in itself, but made interesting because it sets a new ATH for the asset. This was led by some ETF purchasing overnight and with the low volatility environment the last 2 months finally breaching $110k." - Paul Howard

Political Pressure and Institutional Adoption

The driving force behind this week’s spike in Bitcoin ETF inflows has its origins in the incredible political pressure that has been applied on the Federal Reserve. Donald Trump's aggressive campaign, openly demanding that Fed Chair Jerome Powell cut rates to 1% and resign, has triggered massive institutional flows into Bitcoin ETFs.

"The primary catalyst behind why crypto is rising stems from unprecedented political pressure on the Federal Reserve. Donald Trump's aggressive campaigndemanding Fed Chair Jerome Powell cut rates to 1% and resign has triggered massive institutional flows into Bitcoin ETFs."

This political backdrop has made the Bitcoin proposition irresistible, as the ultimate hedge against legacy financial systems. Several factors contributed to Bitcoin's rally, including institutional ETF demand, declining volatility preceding major moves, corporate treasury adoption, and regulatory momentum around digital asset legislation.

"Bitcoin's rally past $112,000 is fueled by institutional ETF demand, declining volatility preceding major moves, corporate treasury adoption, and regulatory momentum around digital asset legislation." - Ryan Chow

Emirates’ announcement that it will add cryptocurrency payments to its operations is a powerful signal of this increasing acceptance.

Ethereum, XRP, and Dogecoin Join the Rally

Ethereum continues to be a notable leader. It went through an astounding $2,790 price on $2,790 Ethereum daze push 6% bump, converting its price to a total 7%. This surge reflects growing confidence in Ethereum's technological advancements and its pivotal role in decentralized applications (dApps) and decentralized finance (DeFi).

Meanwhile, XRP has achieved major momentum, its weekly growth climbing over 7%. This resurgence is a reflection of the renewed interest in XRP’s potential for cross-border payments and that it’s continuing to develop in the Ripple ecosystem.

Dogecoin has been one of the big beneficiaries of the rally too, gaining 6%+ over the past few trading sessions. This bump demonstrates that meme coins are still having a huge influence on the crypto landscape. Social media trends and their local communities’ support are accelerating their ascendance.

Market Liquidations and Future Outlook

This short squeeze from the rapid crypto revival has led to the biggest wave of liquidations since May, affecting tens of thousands of traders. Over 114k traders were liquidated, with $463 million in short positions. Whatever the specifics of this liquidation event, it adds to the growing record of high volatility and risk involved in cryptocurrency trading.

That spike was augmented by short positions being sold off, including over $460 million in forced liquidations. Speculators of every stripe have reacted strongly to Bitcoin’s new all-time high. This massive inflow and subsequent liquidations underscore the importance of risk management and prudence in the volatile world of crypto.

"With Bitcoin surging past $112,000 for the first time to set a fresh record high, the market is booming. The rise is underpinned by increasing institutional adoption and resurgent retail demand, reflecting confidence that crypto has arrived in the mainstream and is now reshaping finance," - Nick Jones