Why is Bitcoin (BTC) Price Going Up? Exploring the Trigger Factor

Have you noticed Bitcoin (BTC) price surging lately? It’s been climbing steadily, and many are asking, why is Bitcoin going up?

If you’ve been paying attention to the crypto market recently, you may have seen Bitcoin's price reaching new heights, with recent data showing an impressive rise to $105,000. But what's behind this surge?

In this article, we’ll explore the factors that are triggering this upward movement in Bitcoin’s price. From institutional demand to technical patterns, a lot is going on that’s influencing Bitcoin’s market performance.

Spot Bitcoin ETF Inflows: A Growing Trend

One of the key drivers of Bitcoin’s recent price surge has been the growing popularity of spot Bitcoin exchange-traded funds (ETFs). These ETFs allow investors to gain regulated exposure to Bitcoin without directly purchasing the cryptocurrency.

Over the past few weeks, there has been a significant increase in capital flowing into these ETFs. According to data from Farside Investors, Spot Bitcoin ETFs recorded inflows for 18 out of the last 21 days, with a cumulative total of $6.9 billion in new capital.

This trend suggests a growing demand for Bitcoin, particularly among institutional investors who are looking for secure, regulated exposure to the cryptocurrency.

Additionally, as Bitcoin investment products continue to attract more institutional money, confidence in Bitcoin as a long-term asset grows, pushing its price upward.

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Institutional Investment: A Big Vote of Confidence

Institutional investors have also played a huge role in Bitcoin’s rising price. High-profile corporate investors are increasing their Bitcoin holdings, contributing to the increased demand for the cryptocurrency.

For example, companies like Strategy (formerly MicroStrategy) have been actively acquiring Bitcoin. Recently, Strategy purchased 7,390 BTC, worth around $765 million. In another notable move, Japan’s Metaplanet added 1,004 BTC to their holdings, valued at about $129 million.

With these institutional purchases, it’s clear that Bitcoin is being viewed as a valuable asset, not just by retail investors, but by major corporations as well. This institutional adoption is helping fuel Bitcoin’s price growth.

Bitcoin’s Open Interest Hits Record Highs

Another major factor contributing to Bitcoin’s rise is the increase in open interest (OI) in the futures market. Open interest represents the total number of outstanding contracts in the futures market and serves as an indicator of market sentiment and demand for Bitcoin.

Bitcoin’s OI reached an all-time high of $72.63 billion on May 20, 2025, according to data from CoinGlass. This represents a significant 27% increase in OI over the past 30 days, suggesting that more traders are betting on Bitcoin’s continued upward trajectory.

As more investors enter the Bitcoin futures market, the demand for Bitcoin continues to grow, driving up its price.

Additionally, the strong demand for Bitcoin futures contracts mirrors the rally seen in late 2024 and early 2025, further suggesting that Bitcoin's uptrend is not a fluke, but rather a sign of sustained growth.

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Technical Analysis: Cup-and-Handle Pattern

From a technical analysis perspective, Bitcoin’s price movement also looks promising. The BTC/USD pair has been forming a bullish cup-and-handle chart pattern since December 2024. This pattern typically signals a breakout, and it looks like Bitcoin is on the verge of breaking out.

In a cup-and-handle pattern, the price falls initially, forming a U-shape recovery that forms the cup. After a pullback, the price forms a handle as it trends lower in a descending channel. When the price breaks above the handle, it usually rallies to a level equal to the prior decline.

Bitcoin is currently trading above the handle range, with the next target being $106,000. If Bitcoin can close above this resistance level, it could continue its rise towards a target price of $138,000, a 31% increase from its current price.

Conclusion: The Future of Bitcoin’s Price

As we’ve seen, Bitcoin’s price is driven by several key factors. Institutional investments, strong demand for Bitcoin ETFs, increasing open interest in futures contracts, and technical patterns all point towards sustained bullish momentum in the Bitcoin market.

As a result, Bitcoin’s price is expected to continue its upward journey, with potential for even higher prices shortly.

Are you ready to join the Bitcoin wave? Start your crypto journey today and get involved with trading on Bitrue Exchange! For more information on Bitcoin and crypto trends, make sure to check out the Bitrue Blog.

FAQs

1. Why is Bitcoin rising now?

Bitcoin’s price is rising due to increased institutional demand, higher capital inflows into Bitcoin ETFs, and growing open interest in Bitcoin futures.

2. How does institutional investment impact Bitcoin’s price?

Institutional investments boost demand for Bitcoin, creating upward pressure on its price as large corporations and hedge funds increase their holdings.

3. What is the cup-and-handle pattern in Bitcoin trading?

The cup-and-handle pattern is a bullish chart formation that typically signals a price breakout. Bitcoin is currently showing signs of this pattern, indicating potential for further price increases.