FameEX Hot Topics | Shorts Crushed as Bitcoin Climbs to New Peak Over $112K

Bitcoin’s price surged past the $112,000 mark for the first time on Wednesday, setting a new all-time high after gaining nearly 6% over the past week. This latest milestone helped push the total cryptocurrency market capitalization back up to $3.47 trillion—a level not seen since June 2025. However, despite the renewed momentum, the market remains below its historical peak of $3.73 trillion recorded in December 2024.

The breakout in Bitcoin’s price came shortly after President Trump announced a new wave of tariffs, with rates as high as 40% on countries including Malaysia, Kazakhstan, South Africa, Myanmar, and Laos. Japan also saw its tariff rate raised to 25%, with all measures scheduled to take effect on August 1. These geopolitical developments may have contributed to renewed investor interest in Bitcoin as a macro hedge, especially in a climate of rising economic uncertainty.

Analysts say Bitcoin’s rally has been bolstered by a healthy market reset. The flush-out of over-leveraged traders has created a more stable foundation for continued upward movement. “The convergence between on-chain accumulation and off-chain exchange order flow paints a compelling picture,” one analyst noted. “This rally is supported by real capital inflows rather than fragile speculative leverage.” For the bullish trend to continue, they emphasized that spot buyer dominance must remain intact in the coming weeks.

Katalin Tischhauser, head of research at Sygnum Bank, believes Bitcoin’s recent price action reflects its strengthening status as a safe-haven asset. Since Trump’s “Liberation Day” speech on April 2, Bitcoin has been outperforming other assets—especially on days when the S&P 500 has corrected. Tischhauser pointed out that the trend has been supported by fears of fiat debasement and further validated by the first U.S. state passing a law to hold Bitcoin reserves, in line with a federal executive order on Bitcoin reserves.

Supporting this narrative, Bitcoin exchange reserves have steadily declined, signaling investor confidence and potential future supply constraints. According to Glassnode, the total BTC held on exchanges dropped to 2.99 million by May 21, down from over 3.11 million on March 13. This tightening supply may help fuel further price increases if demand remains strong.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.