What happened?
Bitcoin jumped above $125,000 today after heavy inflows into U.S. spot ETFs drove demand. ETFs logged about $3.24 billion in net inflows over the past week, the biggest seven-day total of 2025. The move shows renewed institutional interest, but traders are already showing signs of fatigue as capital rotates out of altcoins amid policy uncertainty.
Who does this affect?
Institutional investors and ETF buyers are the main beneficiaries, getting regulated exposure to Bitcoin. Retail holders and smaller token projects are being squeezed as altcoins lag and engagement drops. Derivatives traders also face higher risk because open interest has plateaued and funding rates are compressing, making positions vulnerable if flows reverse.
Why does this matter?
The concentration of gains in Bitcoin means the rally lacks breadth, which could make the market more fragile. If ETF flows slow or monetary policy expectations shift, a pullback could be sharp and amplified by futures positioning. Investors and market makers should watch ETF inflows, interest-rate signals, and derivatives metrics to judge whether this is a durable allocation trend or a short-term squeeze.