- Bitcoin set a new record high of $118,667 on Friday, exceeding its previous all-time high by nearly $7,000.
- The cryptocurrency is rising at a slower pace compared to earlier cycles because of lower market volatility and increasing options trading.
- Bitcoin exchange-traded funds (ETFs) attracted more than $1 billion in inflows on both Thursday and Friday.
- Market experts say institutional investors are changing trading patterns, leading to steadier price movements.
- Despite reduced volatility, Bitcoin may still experience periods of high price swings, according to analysts.
Bitcoin reached a new all-time high of $118,667 on Friday, according to data from CoinGecko. The cryptocurrency’s new top comes amid a slower upward movement compared to previous bull markets, driven by increased participation from large investors and evolving market dynamics.
The price surge means Bitcoin has risen about 25% since the start of 2025, when it traded at approximately $93,500. Bitcoin ETFs accumulated more than $1 billion in net inflows each on Thursday and Friday, with significant activity reported in funds managed by BlackRock, Fidelity, and Ark Invest.
Experts say that as the Bitcoin market matures, volatility is decreasing. “A slow and steady grind higher is sustainable, unlike a massive, bubble-like rally,” said Greg Magadini, Director of Derivatives at Amberdata. He compared Bitcoin’s steadier progress to sustainable training methods versus quick, unsustainable spikes.
In past years, Bitcoin experienced steep surges. For example, in 2017 Bitcoin climbed from $786 at the start of the year to $19,345 by December—a more than 2,300% increase. In contrast, Bitcoin’s realized volatility has fallen to 29.5%, down from about 100% during 2021’s rally. The options market, where traders make bets on future prices, has expanded significantly. Open contracts on Deribit climbed over $42.5 billion in May, compared to a peak of $15 billion in October 2021.
Institutional investors now use new Bitcoin ETFs and options to manage risk and supply market liquidity. Investors holding large amounts of Bitcoin—often called “whales”—sell call options, which gives others the right to buy Bitcoin in the future at a set price. This activity helps to lower volatility, especially as more experienced traders enter the space.
Analysts note that, while current trading patterns favor gradual growth, Bitcoin can still show sharp price movements. “I would definitely not rule out periods of high volatility,” said David Lawant, Head of Research at FalconX. He added that any rapid price swings may now happen over shorter time frames.
Bitcoin has drawn more institutional capital since spot ETFs received approval in January 2024. ETF inflows continue to play a significant role in supporting the leading cryptocurrency’s price.
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