Bitcoin surged to a historic high late Wednesday, breaking past the $112,000 mark for the first time. The rally was fueled by renewed institutional enthusiasm and a rising appetite for risk, as traditional financial players continue to expand their involvement in the cryptocurrency space.
The flagship digital asset climbed as much as 3.1% to reach $112,009 before pulling back slightly to close the day at $111,259. So far in 2025, Bitcoin has gained over 18%, defying persistent macroeconomic pressures and geopolitical uncertainty.
Tariff Shocks Fuel Digital Demand
The sharp uptrend coincides with escalating global trade tensions following the announcement of new tariffs by U.S. President Donald Trump. The administration unveiled steep duties—up to 40%—on goods from five emerging economies: Malaysia, Kazakhstan, South Africa, Myanmar, and Laos. Japan also saw its tariff rate hiked to 25%, with the changes slated to take effect on August 1.
Analysts believe these developments have contributed to Bitcoin’s momentum, with investors increasingly turning to crypto as a hedge against global instability. The Trump administration’s perceived pro-crypto stance has further catalyzed institutional flows into digital assets.
Wall Street and Silicon Valley Boost Crypto Exposure
Adding to the surge, Trump Media & Technology Group (DJT.O)—a company helmed by members of the Trump family—filed a proposal with U.S. regulators to launch a multi-token cryptocurrency exchange-traded fund (ETF). The ETF aims to include holdings in bitcoin, ether, solana, and ripple, underscoring growing mainstream interest in the asset class.
The crypto rally extended beyond Bitcoin, lifting several top digital currencies and crypto-related equities:
- Ether (ETH) rose 5.4% to settle at $2,740.99 after briefly touching a one-month high of $2,794.95.
- MicroStrategy (MSTR.O), known for its massive bitcoin holdings and co-founded by crypto advocate Michael Saylor, advanced 4.7% to $415.41.
- Coinbase Global (COIN.O), the largest cryptocurrency exchange in the U.S., gained 5.4%, closing at $373.85.
“Companies are expected to continue adopting bitcoin as a reserve asset in the second half of 2025,” noted industry analysts, citing a trend toward de-dollarization and diversification of corporate treasuries.
According to data from Coinglass, short sellers suffered nearly $340 million in liquidations across multiple exchanges in the four-hour window surrounding Bitcoin’s breakout to a new all-time high.
Hope Persists for U.S. Bitcoin Reserve
Speculation lingers within the crypto community regarding the potential for the U.S. government to establish a strategic bitcoin reserve by year-end. However, sentiment appears to be waning, with Polymarket reporting a notable decline in the perceived odds of such a move materializing in 2025.
Meanwhile, both Coinbase Global (COIN) and MicroStrategy (MSTR) ended the day up roughly 5%, reflecting the broader optimism surrounding crypto markets. Traditional equities also experienced gains, with the tech-heavy Nasdaq Composite Index hitting a new record high.
As institutional interest deepens and geopolitical uncertainty persists, Bitcoin continues to solidify its status as a core component of the modern financial landscape.
