Bitcoin prices surged to an all-time high of $118,000 on Friday, driven by a surge in buying activity and a collapse of short positions. The recent rally has increased the cryptocurrency’s 2025 return to 26%, matching its performance against gold.
On Wednesday, Bitcoin broke through its previous peak of $111,000, marking the start of a new wave of momentum-driven buying. This, combined with second-highest inflows into Bitcoin exchange-traded funds (ETFs) on Thursday, solidified the uptrend.
The surge in momentum investors is often driven by trend-following strategies rather than fundamental analysis, suggesting that market sentiment plays a significant role in shaping prices.
Source: https://www.marketwatch.com/story/shorts-folding-records-tumbling-inflows-mounting-bitcoins-unstoppable-ascent-takes-another-leg-up-56223f57