Bitcoin (CRYPTO: $BTC) climbed above $79,000 on Friday, extending its gains for a fourth straight day as large holders increased their exposure and institutional money returned to the market.

BTC rose more than 6% to reach its highest level since May, with analysts pointing to a mix of improving liquidity, regulatory optimism and renewed demand from larger investors.

Simon-Peter Massabni, head of business development at XS.com, told Cryptoprowl that the latest move was supported by renewed accumulation among Bitcoin's largest holders. According to BGeometrics data cited by Massabni, entities holding more than 10,000 BTC added over 30,000 Bitcoin in a single day and more than 55,000 BTC over the past month.

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Their combined holdings have now surpassed 300,000 BTC, reaching their highest level since November 2024, Massabni said.

Institutional demand has also picked up. Spot Bitcoin exchange-traded funds have recorded more than $1.6 billion in net inflows so far this week, putting them on track for their strongest weekly performance since October, according to SoSoValue data.

Bitcoin futures activity has risen alongside the spot market. Open interest climbed above $54 billion, nearly $10 billion higher than its late-June low, according to CoinGlass.

"This influx of liquidity coincided with the largest wave of short position liquidations in cryptocurrency history, exceeding 2.7 billion dollars last Wednesday, followed by over 1.6 billion dollars in position liquidations between yesterday and today," Massabni said.

Cloud, an analyst at HTX Research, told Cryptoprowl that the rally is "far more than a conventional technical rebound," pointing to a combination of easier financial conditions, regulatory developments and institutional buying.

Cloud identified $76,000 as a key level. A sustained breakout above it could open the way toward $80,000, while $72,000 is the first major support and $66,600 remains the broader bullish structure's key floor.

Meanwhile, Massabni warned that unresolved geopolitical tensions, particularly between the US and Iran, could push inflation and bond yields higher, potentially triggering a sharp correction.