Bitcoin has officially broken through a new all-time high, surpassing $112,000 for the first time in history. The rally was fueled by a massive short squeeze that liquidated over $200 million in short positions near a key resistance zone, combined with surging investor demand for risk assets worldwide.
Over the past week alone, Bitcoin has gained nearly 6%, pushing the total cryptocurrency market capitalization back to $3.47 trillion — the highest level since June 2025. However, the market still remains below its all-time high of $3.73 trillion recorded in December 2024.
Notably, this milestone comes just days after President Donald Trump announced a new set of tariff policies, including duties of up to 40% on imports from Malaysia, Kazakhstan, South Africa, Myanmar, and Laos. Japan also raised its import tax rate to 25%, with the new tariffs expected to take effect on August 1. These geopolitical tensions have further heightened global uncertainty, prompting investors to seek refuge in safe-haven assets like Bitcoin.
According to analysts at crypto exchange Bitfinex, Bitcoin’s sharp rebound has been driven in part by the forced unwinding of overleveraged positions, helping to establish a more stable base for the ongoing rally. “This latest surge is underpinned by real capital inflows, supported by both on-chain accumulation and off-chain trading activity,” the Bitfinex team noted.
Experts believe the bullish trend could continue in the coming weeks, provided that spot buying pressure remains dominant.
From a macro perspective, Katalin Tischhauser, Head of Research at Sygnum Bank — a digital asset-focused institution — said Bitcoin’s rally since former President Trump’s announcement of “Liberation Day” on April 2 is a clear sign of the cryptocurrency’s growing role as a safe-haven asset in an increasingly unstable global environment.
