Bitcoin surged past $112,000 for the first time, setting a fresh record alongside a broad rally in risk assets that has swept up technology stocks big and small. The original cryptocurrency rose as much as 3.1% to $112,009, pushing its gain this year close to 20%.
The move underscores the speculative momentum gripping markets even as President Donald Trump unleashes a fresh barrage of tariff announcements. The crypto rally is far from isolated: Nvidia Corp.'s brush with a $4 trillion valuation in Wednesday trading helped push the S&P 500 within a whisker of its record, with fast-money investors joining the stock-market fray.
“Voracious demand from equity market vehicles such as ETFs and digital-asset Treasuries has underpinned a continuous bid for Bitcoin,” said Spencer Hallarn, global head of OTC trading at crypto investment firm GSR.
The rally is a boon for a new generation of Wall Street deal makers and corporate executives — led by crypto treasury companies — that are banking on the token's advance to unlock new rounds of financings.
Graphic: Bloomberg
Bitcoin's breakout, fueled by institutional demand, is the latest validation for crypto bulls, who pounced after the November election on bets that the Trump presidency will usher in a new era of permissive regulation.
Still, digital-asset markets remain at the mercy of febrile sentiment on Wall Street in a year of volatility.
“Traders should stay vigilant for potential profit-taking or macroeconomic shifts that could spark corrections, but the trend is firmly bullish for now,” said Vincent Liu, chief investment officer at crypto trading firm Kronos Research.
Short-dated options are also signaling optimism. On crypto-exchange Deribit, the bullish contracts expiring in late July show elevated open interest at the $115,000 and $120,000 strike levels.
“BTC's move through $112,000 reflects the compounding effects of strong ETF inflows, rising institutional adoption, and a favorable macro backdrop,” said Adam Guren, founder and CIO at Hunting Hill Global Capital. “With rate cuts back on the table and political instability rising globally, investors are reaching for hard assets and Bitcoin is benefiting from both ‘gold like' positioning and risk on momentum. What's different this cycle is that the demand is structural, regulated, and sticky.”
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