Bitcoin surged through the $123,000 mark in a strong display of bullish momentum, rallying sentiment across global crypto markets. This milestone comes amid heightened institutional demand and record trading volumes for spot Bitcoin exchange-traded funds, while El Salvador’s national Bitcoin reserves delivered a significant windfall.
Market Overview
After consolidating around $115,000 earlier this week, Bitcoin zoomed past resistance at $120,000 and decisively closed above $123,000 on Friday. Technical indicators are flashing further upside potential: the 14-day RSI sits near overbought territory but remains supportive of continued strength, and daily moving averages have formed a bullish crossover. Traders are now eyeing the next psychological barrier at $125,000.
Institutional Flows and ETF Activity
Spot Bitcoin funds saw fresh inflows this week, driving their total holdings to approximately $77.2 billion. Trading volumes across major listings jumped to multi-billion-dollar levels, as asset managers and hedge funds rotated capital into the cryptocurrency. The sustained ETF demand is reinforcing Bitcoin’s price floor and narrowing the gap between spot and futures markets.
El Salvador’s Bitcoin Strategy Pays Off
El Salvador’s government reserves hit new profitability highs, with unrealized gains climbing to roughly $468 million. Since adopting Bitcoin as legal tender, the country has weathered volatility and is now reaping rewards from this latest rally. Officials are reportedly evaluating additional purchases to strengthen the national balance sheet and support blockchain initiatives.
Looking Ahead
With momentum building, analysts believe Bitcoin could test the $125,000 zone within the next trading sessions. Macro factors such as upcoming interest rate decisions and global liquidity flows will play a key role in sustaining the rally. Meanwhile, the network’s fundamentals remain robust: on-chain activity is rising, while miner revenue has rebounded alongside fees.
As Bitcoin approaches the halfway point to its next supply halving, market participants will monitor institutional appetite and macroeconomic signals. If bullish sentiment persists, a run toward $130,000 cannot be ruled out, reinforcing Bitcoin’s growing status as a mainstream asset class.