TLDR
- Bitcoin reached a new record weekly close above $106,000, approaching its all-time high of $109,500
- US-listed spot Bitcoin ETFs recorded net inflows of $608 million with BlackRock’s iShares Bitcoin Trust leading
- Bitcoin has closed with a weekly gain for six consecutive weeks
- MicroStrategy added 13,390 BTC worth $1.3 billion to its holdings, now owning 568,840 BTC
- Demand from institutions and ETFs is outpacing the projected annual supply of 165,000 BTC from miners
Bitcoin has set a new record for its highest weekly close ever, settling above $106,000 after a weekend rally. The digital asset pushed as high as $107,000 on Sunday, narrowing the gap to its January all-time high of $109,500 to just 2-3%.
After testing higher levels, Bitcoin eased to around $104,500. Analysts view this pullback as healthy consolidation amid rising institutional flows and tightening market supply.
Bitcoin has closed with a weekly gain for six consecutive weeks in a row. Its most recent close at midnight UTC on May 18 was just below $106,500, surpassing its previous highest weekly close of $104,400 from December.
Bitcoin just had its highest daily candle close… ever. pic.twitter.com/6qGKYx8VwA
— The Wolf Of All Streets (@scottmelker) May 19, 2025
The cryptocurrency also posted its highest-ever close in a 24-hour period on May 18.
Investor appetite for Bitcoin investment products remains robust. US-listed spot Bitcoin ETFs recorded net inflows of $608 million, building on momentum from the previous week.
BlackRock’s iShares Bitcoin Trust topped the list, pulling in more than $840 million. This was more than the combined net inflows of the rest of the market.
Institutional Demand Growing
Corporate demand for Bitcoin continues to show strength. MicroStrategy, the largest corporate holder of BTC, announced the acquisition of an additional 13,390 BTC for approximately $1.3 billion.
This brings the company’s total holdings to 568,840 BTC. Their aggressive accumulation strategy continues to set the pace for institutional adoption.
A growing number of companies have either adopted Bitcoin or announced plans to hold it as a strategic reserve asset. Many are expected to continue purchasing BTC in the months ahead.
The global race among nations to establish sovereign Bitcoin reserves is also expected to accelerate. This will further tighten supply in the years ahead.
According to analysts at Bitfinex, “This is not a melt-up—it’s a structurally supported move. As long as ETF and institutional flows persist and macro stays stable, dips are likely to be brief and bought aggressively.”
Supply-Demand Imbalance
Matt Hougan, Chief Investment Officer at Bitwise, points out that demand is now outpacing supply. With miners projected to produce just 165,000 BTC this year, public companies and ETFs have already acquired more than that amount.
Hougan sees this structural imbalance as a key driver that could propel Bitcoin beyond $100,000, with $200,000 as the next major target.
The Coinbase premium, which measures US sentiment by comparing Coinbase’s BTC/USD pair and Binance’s BTC/USDT equivalent, has also returned. Some market observers noted the strength of buying pressure, even on a Sunday night.
Bitcoin’s compound annual growth rate (CAGR) is trending downward as the network continues to store more capital. Analyst Willy Woo compared it to long-term monetary expansion of 5% and GDP growth of 3%.
People think BTC is like a magical unicorn that climbs to infinity on moonbeams. Here's the actual CAGR chart. We are well past the 2017 year where we'd see many 100s of percent growth.
Now look at 2020, that was the year BTC got institutionalised, corporations and sovereigns… pic.twitter.com/hcGAGZXkU5
— Willy Woo (@woonomic) May 18, 2025
Woo estimated that Bitcoin’s annual growth rate will be around 8% in approximately 15 to 20 years when it has settled. Until then, he suggests that almost no publicly investable product can match Bitcoin’s long-term performance.
Bitcoin has added around $12,000 so far in May, climbing from $94,000 to over $106,000 before pulling back slightly to around $105,400.
At the time of writing, Bitcoin is trading around $104,730, less than 3% away from its all-time high.
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