FameEX Hot Topics | Bitcoin Hits Record High Above $112K as Short Sellers Get Squeezed

Bitcoin has broken through the $112,000 mark for the first time, setting a new all-time high following a 5.95% gain over the past week. This price surge has propelled the total cryptocurrency market capitalization back to $3.47 trillion, a level last seen in June 2025. Despite the impressive momentum, the overall market cap still lags behind its December 2024 record of $3.73 trillion. Nonetheless, the recent rally has reignited optimism among investors and analysts, who see signs of structural strength underpinning the move.

The timing of Bitcoin’s breakout aligns closely with new geopolitical developments. Just days before the surge, U.S. President Donald Trump announced a sweeping round of tariffs targeting 14 countries. The most severe rates—up to 40%—will impact Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, while Japan’s rate was lifted to 25%. These tariffs are set to take effect on August 1. Market watchers suggest that growing macroeconomic tension, combined with trade policy uncertainty, has prompted investors to seek safety in Bitcoin as a non-sovereign store of value.

Analysts are also crediting the rally to healthier market conditions, especially after the recent reset of over-leveraged positions. The removal of excessive risk has led to what some describe as a stronger, more organic foundation for Bitcoin’s ascent. “There’s a clear convergence between on-chain accumulation and exchange order flow,” one analyst said, “indicating that real capital—not just speculative leverage—is driving the rally.” For the rally to be sustained, analysts stress the importance of continued spot market demand and long-term holder participation.

Katalin Tischhauser, head of research at Sygnum Bank, echoed this sentiment, citing Bitcoin’s increasing appeal as a safe-haven asset. Since Trump’s “Liberation Day” speech on April 2, Bitcoin has outperformed traditional assets, particularly during downturns in the S&P 500. Tischhauser attributes this trend to concerns over fiat currency debasement and recent legislative support for Bitcoin reserves at both the federal and state levels.

Adding to bullish sentiment, Bitcoin reserves on exchanges have steadily declined. Glassnode data shows reserves dropped from over 3.11 million BTC on March 13 to just 2.99 million by May 21. This tightening supply could amplify future price gains if investor demand remains high.

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