Bitcoin Hits Record $112K as Institutional Demand and Pro-Crypto Policies Fuel Rally

Bitcoin surged to an unprecedented high of $112,000 on Wednesday, marking a major milestone for the flagship cryptocurrency. This 3.1% climb brings its year-to-date gain to nearly 20%, driven by intensified institutional investment and growing confidence from traditional financial entities. Despite global economic uncertainty and geopolitical instability, bitcoin has demonstrated resilience, consolidating its status as a premier digital store of value.

The crypto market rally gained momentum following the announcement of new U.S. tariffs on countries like Malaysia, South Africa, and Japan. President Donald Trump’s policies, viewed as favorable to the crypto sector, have encouraged risk appetite among investors. Analysts suggest that these policy moves, while protectionist in nature, are inadvertently catalyzing capital flows into digital assets as hedges against volatility and inflation.

Adding fuel to the rally, Trump Media & Technology Group filed plans for a multi-token cryptocurrency ETF with U.S. regulators. The fund would include allocations in bitcoin, ether, solana, and ripple, signaling rising mainstream acceptance and Wall Street’s deepening interest in crypto-based financial products. This announcement was widely seen as a key trigger for bitcoin’s breakout above the $112K mark.

The bullish sentiment wasn’t limited to bitcoin. Ether jumped over 5% to $2,794, while shares of MicroStrategy and Coinbase gained 4.7% and 5.4% respectively. With nearly $340 million in bitcoin short positions liquidated within hours of the price surge, momentum traders and long-term bulls alike seem to be strengthening their positions as the market anticipates further upside in the second half of 2025.

Despite speculation that the U.S. government might establish a strategic bitcoin reserve, expectations around that possibility have cooled. Nonetheless, institutional accumulation and expanding ETF products appear to be sustaining investor enthusiasm. As the Nasdaq also hit new highs, Wednesday’s events signaled a broader convergence between traditional finance and the crypto economy.

Source: Nairametrics