Bitcoin Surges to $108K Amid Institutional Buying and Geopolitical Relief

The 2024–2025 bull cycle has seen Bitcoin maintaining its strong performance, hitting $108,200 following a sharp two-day surge.

The latest rally seems to be driven by these factors: clear market structure, institutional accumulation, and relief from rising geopolitical tensions.

The latest surge takes us to a place we know well. We have seen it before during this current cycle. After the deep corrections, we get strong rebounds, and they tend to take us to new all-time highs. So, what is behind this kind of behavior? Why is it more than just a coincidence? Why are we not calling this an “anomaly of nature?” Analysts now want us to consider three key elements driving this price action: Bitcoin market maturity, demand for Bitcoin, and the macroeconomic conditions around Bitcoin that we now consider to be stable.

Pattern of Healthy Corrections Reinforces Bullish Structure

Since the ongoing bull market began in November 2022, Bitcoin has encountered only two major corrections of more than 30%. The first happened in August 2024 and the second in April 2025. After both substantial pullbacks, Bitcoin’s price not only recovered but retraced upward to fresh all-time highs shortly thereafter.

Other than those two big corrections, Bitcoin has paused in a much calmer 10–20% range—classic shakeouts, really, not a sign of structural weakness.

The pauses serve a purpose: they allow traders accumulating Bitcoin at lower prices to do so, while the asset makes its way back toward higher prices. And with each pause, Bitcoin seems to mark making stronger back-to-back highs in a bull market, a pattern that also seeks to minimize the risk of Bitcoin making another lower high, another sign of weakness.

As of today, the current drawdown of Bitcoin from its recent peak is just -4.7%, and the weekly Simple Moving Average (SMA) drawdown is around -7%. These numbers say to me that the market is consolidating, not correcting. Action prices between $100,000 and $106,000 appear stable, with strong support around the $96,000 mark that gives me confidence a new move to the upside is underway.

Analysts are interpreting the current ongoing amplitude drawdown narrowness—where each correction is becoming shallower than the last—to be a sign of a maturing market and a more disciplined investor base. Sharp volatility in past cycles was often linked to retail speculation. These days, when we get a bout of volatility, the data suggest that more calculated, institutional-driven buying is holding the market together.

ProCap’s Massive Accumulation Triggers Market Reaction

Part of the newest surge in Bitcoin’s price came from a substantial buy from a major institutional player. On June 23, ProCap—a big investment firm that focuses on digital assets—told the world it had merged with a shell company to raise $1 billion. More importantly, ProCap revealed it had raised more than $750 million in fresh capital that it was in the process of deploying into investments.

In less than a day, ProCap spent roughly $514.5 million on Bitcoin. Of that big chunk of change, they bought 3,724 BTC for about $386.5 million, at an average price of $103,785. ProCap’s buying coincide with a sharp uptick in Bitcoin’s price—nearly a 5% increase in the hours following their first major buy. So, to put this number in further context, by the time they were done revealing purchases to the public, they’d piled on another 1,208 BTC, for an average price of about $105,977.

Overall, ProCap has picked up a staggering 4,932 BTC worth in excess of $514 million in just two days’ time, making it one of the cycle’s most vigorous institutional buyers. This single-entity accumulation has traders and analysts talking, and for good reason: It could be a (okay, it probably is a) short-term price stimulus, and it surely is an adoption signal.

Geopolitical Calm Adds to Market Optimism

Besides the on-chain and institutional factors, worldwide macro conditions have also been beneficial for Bitcoin. The ceasefire between Israel and Iran has so far held, and tensions between the two nations have eased. That has enabled the market to breathe a sigh of relief. Investor fears about a terminal escalation in that conflict—and its potential to draw in other nations and lead to a much larger regional war—have receded. And without all that worry hanging over the market, investors look to reallocate into riskier assets like, say, Bitcoin.

Changing sentiment between caution and euphoria makes Bitcoin the hot topic of conversation. The Fear and Greed Index continues to swing with each macro update, but Bitcoin’s structural indicators suggest that the long-term trajectory remains intact. If you believe in the Bitcoin story, this is your moment. And if you’re a Bitcoin skeptic, well, this is still your moment.

Strong accumulation, very low volatility, and soothing political conditions form a three-part elixir that could drive Bitcoin to its next price peak. If history is any guide, the digital currency’s next stop could well be above $110,000.

Conclusion

Bitcoin’s recent run to $108,200 shows how strong this current bull cycle is. Backing from deep-pocketed institutional investors like ProCap, a clear technical structure, and very much improving macro conditions have put the digital asset in a position to make new highs. Of course, unless we run into some unexpected headwinds, it looks like this bull won’t stop for quite a while.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!