Bitcoin shattered previous records by surging past $97,000 early Friday, capping a remarkable week of gains driven by institutional investment flows. The cryptocurrency's market capitalization now exceeds $1.9 trillion as traditional finance giants accelerate adoption.

Institutional FOMO Accelerates

Major financial institutions initiated substantial Bitcoin acquisitions over the past month. BlackRock's spot Bitcoin ETF witnessed record inflows exceeding $2.3 billion in a single week. ETF products collectively hold over 1.2 million BTC, representing approximately 6% of circulating supply.

Corporate treasuries increasingly treat Bitcoin as inflation hedge and reserve asset. Technology firms disclosed significant cryptocurrency holdings in quarterly filings. Sovereign wealth funds reportedly explored allocation strategies, though none confirmed public positions.

Supply Dynamics Drive Rally

The April 2024 Bitcoin halving reduced block rewards from 6.25 to 3.125 BTC, constraining new supply issuance. Exchange reserves dropped to five-year lows as long-term holders moved coins to cold storage. On-chain data reveals approximately 70% of Bitcoin remained unmoved for over one year.

Scarcity intensified demand pressure. Mining difficulty adjustments maintained consistent block times despite fluctuating hash rates. Network security reached all-time highs as computational power dedicated to mining operations expanded globally.

Macroeconomic Tailwinds

Federal Reserve interest rate speculation created favorable conditions for risk assets. Dollar weakness against major currencies enhanced Bitcoin's appeal as alternative store of value. Geopolitical tensions in multiple regions drove capital toward decentralized, censorship-resistant assets.

Inflation concerns persisted despite official metrics suggesting moderation. Younger investors increasingly view cryptocurrency as primary savings vehicle rather than speculative trading instrument.

Technical Outlook

Analysts identify $100,000 as significant psychological resistance level. Options markets price in substantial volatility around this threshold. Some traders anticipate consolidation before next leg higher, while others expect rapid breakthrough fueled by momentum algorithms.

Ethereum and altcoins followed Bitcoin's upward trajectory, though with diminished percentage gains. For comprehensive cryptocurrency market analysis, follow GenzNewz.

Sources: CoinMarketCap, Glassnode