Institutional buying has driven the cryptocurrency market to soar, with Bitcoin surging past $116,000 this morning (11th) and breaking through the $118,000 mark at noon, continuing to set new historical highs.

According to CoinGecko's quote, Bitcoin peaked at $118,254 during the afternoon, and by the time of writing, it has fallen back to $117,838, up 5.9% in the past 24 hours. Jeff Mei, the Chief Operating Officer of the cryptocurrency exchange BTSE, stated:

We believe that Bitcoin reaching a historical high is a strong signal indicating that 'a major bull market is about to start.'

Vincent Liu, the Chief Investment Officer of Kronos Research, pointed out that the overall economic environment has recently stabilized, coupled with institutional investors accelerating their layouts, which is reigniting the market's enthusiasm for Bitcoin. He added:

This shift in funds reflects the market's growing confidence in Bitcoin, viewing it as a regulated long-term asset, much like digital gold.

However, he also warned that if the U.S. Consumer Price Index (CPI) data set to be released on July 15 reignites inflation concerns, it could trigger a profit-taking wave in the market, suppressing Bitcoin's upward momentum.

Single-day inflows of nearly $1.2 billion, Bitcoin spot ETFs welcomed the second-highest capital inflow ever.

The Bitcoin spot ETF has played a key role in this round of momentum. Statistics show that the net inflow of U.S. Bitcoin spot ETFs reached $1.18 billion on Thursday, marking the second-highest record since its launch, with institutional funds fully engaged and unyielding.

Min Jung, a senior analyst at Presto Research, stated:

This surge in ETF buying reflects the market's renewed expectations for U.S. rate cuts, as well as institutional investors' growing appetite for Bitcoin.

He added that many companies have begun to follow the strategy of incorporating Bitcoin into their asset allocation, and the listing of ETFs has further lowered the entry threshold, with this expanding demand base being a key fuel for pushing Bitcoin to new highs.

Although there are still uncertainties such as tariff risks looming in the short term, Min Jung believes that the cryptocurrency market still has multiple tailwinds to support the continuation of the bullish pattern:

Looking ahead, even though there are still uncertainties in the short term, the expectation of the U.S. initiating a rate cut cycle, along with the growth trend adopted by institutions, will provide strong tailwinds for the future market.

We believe that the demand for Bitcoin spot ETFs may remain strong in the medium term, especially as Bitcoin's role in diversified investment portfolios continues to evolve.