Bitcoin surpassed $112,000 and briefly set a new all-time high, then slightly returned to $111,000.

The rally, triggered by a combination of technical, macro and institutional catalysts, marks a key moment in the ongoing bull cycle (a term denoting a period of strong growth) since 2025.

The rally was catalyzed by a short squeeze following President Trump's announcement of new tariffs on select foreign countries. The political shock prompted risk-averse investors to invest in bitcoin, sparking a rapid price breakout. Over $209 million worth of short positions were liquidated within 24 hours (at the time of writing) - a jump of 731%, forcing traders to buy back bitcoin and accelerating the surge.

This coincided with a 24.93% jump in spot market volume, reaching $54.6 billion in daily turnover. The jump in volume confirmed strong organic demand, not just derivatives-induced volatility.

Institutional demand continues to be a strong driver for the growth of the largest cryptocurrency. This week alone, U.S. bitcoin spot ETFs attracted $667 million, led by BlackRock's iShares Bitcoin Trust (IBIT), which now holds more than 625,000 bitcoins. This steady influx is reducing the supply in circulation, which is helping to keep upward pressure on the price.

The chain's data also reveals that whale wallets holding between 100 and 1,000 bitcoins have added nearly 50,000 coins since April, repeating the accumulation trends seen before the 2024 bull rally. Meanwhile, 75% of all bitcoins have remained flat for more than a year, further limiting the immediate selling pressure. | BGNES