Bitcoin on Track for Strongest Weekly Rally Since Trump’s Election, With ETFs Raking in $2.7B

On Friday, Sui (SUI), Bitcoin Cash (BCH), and Hedera’s HBAR led the charge in the CoinDesk 20 Index, as Bitcoin (BTC) continued its spring rally, with some analysts predicting this could be the start of a major surge toward record highs for the cryptocurrency.

Bitcoin was trading around $95,000 in the U.S. afternoon session, marking a 1.8% increase in just 24 hours. Ethereum’s ether (ETH) followed closely behind, rising 2% to settle slightly above $1,800. Meanwhile, Sui (SUI), BCH, and Hedera’s HBAR saw some of the strongest gains in the broader crypto market.

The market’s momentum has been impressive, recovering sharply from the lows in early April amid global tariff uncertainty. Bitcoin has risen more than 11% since Monday, securing its largest weekly gain since November 2024, when the victory of Donald Trump in the U.S. presidential election triggered a broad crypto rally.

Investor enthusiasm has been reignited with a notable rebound in ETF investments. U.S.-listed spot Bitcoin ETFs saw $2.68 billion in net inflows this week, marking the largest inflow since December, according to SoSoValue data. (The final data for Friday will be released later.)

Bitcoin’s Detachment from Traditional Markets

Bitcoin’s recent strength, especially in relation to traditional assets like U.S. stocks and gold, underscores its growing detachment from the macroeconomic influences that typically affect these assets, according to David Duong, Coinbase Institutional’s global head of research.

“Real-time inflection points are rare in markets, but the decoupling of Bitcoin from traditional macro assets this week may signify such a shift,” Duong explained in a Friday report. “This divergence underscores Bitcoin’s developing role as a store-of-value asset—one that is being embraced by both institutional and retail investors as a hedge against broader economic uncertainties.”

Duong also pointed out that more companies are adopting Bitcoin for corporate treasuries, citing Twenty One Capital—a new firm backed by Tether, Bitfinex, SoftBank, and Cantor Fitzgerald—which plans to hold 42,000 BTC at launch, further reflecting the growing institutional interest.

Declining Bitcoin Liquidity

Dr. Kirill Kretov, lead strategist at CoinPanel, pointed out that liquidity in the spot Bitcoin market has been significantly reduced, as recent accumulation has pulled large amounts of Bitcoin out of circulation. According to CoinPanel’s proprietary blockchain data, liquidity in active Bitcoin addresses, including exchanges, has been drained since November 2024, leaving the market vulnerable to volatility.

“The market remains thin, and it only takes large players to cause big price swings,” Kretov said. “Expect volatility, with sharp moves of 10% or more in either direction.”

Bitcoin’s Path Toward Record Prices

Despite the potential for short-term volatility, analysts are largely optimistic about Bitcoin’s future, with many believing this week’s rally is just the beginning of Bitcoin’s next leg upward, potentially leading to new all-time highs. John Glover, chief investment officer at crypto lender Ledn, believes BTC has entered the final phase of its multi-year bull market, based on Elliott Wave theory.

According to Elliott Wave theory, asset prices move in a series of waves driven by collective investor psychology. The theory suggests that after corrective phases, Bitcoin is now in the fifth and final wave of its bull market, which is typically marked by an impulsive rally.

While Glover acknowledged that Bitcoin may test its recent low of around $75,000, he remains confident that the cryptocurrency will continue its climb, targeting a cycle top between $133,000 and $136,000 by late 2025 or early 2026.