Bitcoin has surged to a new all-time high, surpassing $112,000, driven by increasing investor demand and liquidation of BTC shorts . Bitcoin's price surpassed the $112,000 all-time high for the first time on Wednesday, after rising 5.95% during the past week .
Several factors have contributed to Bitcoin's recent surge. Increasing institutional adoption, with Bitcoin ETF net inflows reaching $14.4 billion for the year through July 3, with 66 spot ETFs managing over $138 billion in assets, is a significant driver . Additionally, BlackRock's ETF alone held over $65 billion in BTC, and corporate treasuries like MicroStrategy have increased Bitcoin holdings by 31% to $349 billion .
The pro-crypto stance of the Trump administration has also fueled a bullish sentiment . President Trump's push for a Strategic Bitcoin Reserve, formalized by an executive order on March 6, aims to integrate Bitcoin into US reserves, with proposals to acquire up to 200,000 BTC annually over five years . The Senate's advancement of a stablecoin regulatory framework this month and Coinbase's inclusion in the S&P 500 further legitimize crypto, encouraging investment .
Easing US-China trade tensions and a Moody's downgrade of US sovereign debt have positioned Bitcoin as an alternative store of value . The US Dollar Index's 10% year-to-date decline and concerns about de-dollarization have driven interest in Bitcoin, with billionaire Philippe Laffont predicting its market cap could reach $5 trillion .
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 price has risen by 2.29% over the last week, its month performance shows a 0.96% increase , and as for the last year, Bitcoin has increased by 91.48% .