Bitcoin surged to a record high of $112,000 late Wednesday, fueled by increasing institutional interest and a heightened risk appetite as traditional financial entities increase their involvement with the largest cryptocurrency in the world.
The original cryptocurrency climbed by up to 3.1% to reach $112,009, bringing its yearly gain to nearly 20%.
Bitcoin hit an all-time peak of $112,000 before later trading at $111,259 that day. The leading digital asset has risen over 18% year-to-date, overcoming macroeconomic challenges and geopolitical uncertainty.
Tariff Issues and Crypto Enthusiasm
This latest increase follows President Donald Trump’s announcement of broad new tariffs on five emerging markets: Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, implementing rates as high as 40%.
Japan’s tariff rate also increased to 25%, with the new tariffs set to take effect on August 1. Market analysts suggest that the administration’s favorable stance toward crypto is facilitating access to new sources of institutional investment, further promoting the adoption of digital assets.
Wall Street and Tech Increase Crypto Engagement
In addition to this momentum, Trump Media & Technology Group (DJT.O), led by members of the Trump family, submitted plans to U.S. regulators for a multi-token crypto exchange-traded fund (ETF). This proposed ETF would feature investments in bitcoin, ether, solana, and ripple, showcasing the growing mainstream interest in the space.
The rally also positively impacted other major cryptocurrencies and stocks linked to crypto.
Ether (ETH), the second-largest cryptocurrency by market capitalization, jumped to a one-month high of $2,794.95 before closing at $2,740.99, an increase of 5.4%.
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MicroStrategy (MSTR.O), co-founded by bitcoin supporter Michael Saylor, rose 4.7% to reach $415.41.
Coinbase Global (COIN.O), the largest cryptocurrency exchange in the U.S., increased by 5.4% to $373.85.
Some experts in the industry expect businesses to keep acquiring bitcoin as a reserve asset in the latter half of 2025.
As per Coinglass, there were about $340 million in liquidations involving short positions on bitcoin across various exchanges during the four hours surrounding the establishment of the new record high.
Numerous bitcoin holders remain hopeful that the U.S. government will create a strategic bitcoin reserve before the year’s end, although the perceived likelihood of that occurring has significantly decreased this year, according to Polymarket.
Crypto exchange Coinbase Global (COIN) and bitcoin treasury firm MicroStrategy (MSTR) both saw increases of around 5% for the day. Overall, stocks rose on Wednesday, with the tech-focused Nasdaq Composite closing at its own peak.
