Bitcoin soared to another record high, driven by growing global investor demand for risk assets and a $200 million liquidation of BTC shorts near a critical overhead resistance level.
Bitcoin’s (BTC) price surpassed the $112,000 all-time high for the first time on Wednesday, after rising 5.95% during the past week.
Bitcoin’s price appreciation helped the total crypto market capitalization recapture $3.47 trillion, a level last seen in June 2025.
Yet, the crypto market’s value remains below the all-time high of $3.73 trillion recorded in December 2024.
Bitcoin’s new all-time high occurred just days after President Trump announced a fresh round of tariffs of up to 40% against Malaysia, Kazakhstan, South Africa, Myanmar and Laos. Meanwhile, Japan saw its tariff rate lifted to 25% and the new rates go live on Aug. 1.
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Bitcoin’s price momentum is benefiting from a reset in “over-leveraged participants” that created a “healthier foundation for continuation,” analysts from Bitfinex exchange told Cointelegraph, adding:
“The convergence between on-chain accumulation and off-chain exchange order flow paints a compelling picture: this rally has been built on solid ground, supported by real capital flows rather than short-lived speculative leverage.”
“To maintain a constructive outlook for the coming weeks, this pattern of spot buyer dominance must persist,” explained the analysts
Related: Bitcoin more of a ‘diversifier’ than safe-haven asset: Report
Bitcoin rally driven by increasing safe haven status: Sygnum Bank research lead
Bitcoin’s uptrend since Trump’s Liberation Day announcement on April 2 is driven by its growing recognition as a safe-haven asset, according to Katalin Tischhauser, the head of research at digital asset banking group Sygnum Bank.
Since April 2, Bitcoin has been “outperforming as well as increasingly decoupling on days when the S&P 500 corrected,” she told Cointelegraph, adding:
“This has been supported by Bitcoin’s increasing status as a safe haven asset in the face of fiat debasement, also confirmed by the first US state signing a Bitcoin reserve bill into law, following the federal Bitcoin reserve established by Executive Order.”
Bitcoin exchange reserves have also been in a steady decline since late April, which is a sign of “long-term confidence” from Bitcoin investors that may lead to a supply shock-driven rally, according to Tischhauser.
Bitcoin reserves across all exchanges fell to 2.99 million BTC on May 21, down from over 3.11 million BTC on March 13, Glassnode data shows
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