Bitcoin just broke past $112k. After weeks of hovering between $100K and $110K, we finally have a breakout. But traders are already wondering—will this move kick off a new rally? Or are we just looking at another fakeout before revisiting the lower end of the range?
Let’s break down what happened, what’s driving this surge, and where Bitcoin might be headed next.
Guide: Study candlesticks to improve your trading edge.
Bitcoin 112k: A New All-Time High
On Wednesday, Bitcoin jumped to a new record, reaching $112,300 before sliding slightly to around $111,000. Over the past seven days, the price has climbed nearly 6%. This move triggered massive liquidations, especially on short positions.
According to market data, over $200 million in shorts were wiped out. These liquidations helped reset over-leveraged positions. That’s often a healthy sign for a more stable upward move.
Some traders believe we could now enter a new leg higher. Others think we’re still stuck in a bigger sideways range.
Spot Demand and Institutional Buying
Unlike some past rallies, this one seems to be fueled by real buying. Analysts at Bitfinex noted that strong spot demand, not just leverage, is pushing prices higher. This type of demand often leads to more sustainable growth.
Large institutions also appear to be adding Bitcoin to their portfolios. Exchange outflows are rising, suggesting long-term holders are taking coins off trading platforms. That usually means they’re not planning to sell anytime soon.
Occasioanly some dormant whale wakes up and moves $billions in BTC, however they haven’t been spotted dumping. Not yet anyways..
Bitcoin as a Safe Haven
With global tensions rising, more investors are treating Bitcoin like digital gold. Tariff hikes from the U.S. have added pressure to global markets. Yet Bitcoin has continued to perform well, even as stocks wobble.
Sygnum Bank’s research points out that Bitcoin is decoupling from traditional risk assets. On red days for the S&P 500, Bitcoin has managed to stay green. This behavior is part of what’s fueling its “safe-haven” narrative.
Glassnode Data Suggests Strong HODLing
According to Glassnode, Bitcoin exchange balances have dropped from 3.11 million BTC in March to 2.99 million BTC in May. That’s a major signal. Fewer coins on exchanges mean less selling pressure.
When combined with rising demand, this can lead to a supply shock. If that happens, prices could rise even faster. Read all about how high $BTC can run in our recent blog.
Market Cap and Global Rankings
Bitcoin’s market cap now stands above $2.2 trillion. That places it just behind Amazon and ahead of Alphabet in the list of the world’s most valuable assets.
Meanwhile, the total crypto market cap has bounced back to $3.47 trillion. While that’s still under its $3.73 trillion peak from late 2024, the momentum is clearly bullish.
Analyst Predictions: How High Can Bitcoin Go?
Not everyone agrees on what comes next. But many are getting more optimistic.
VanEck’s Matthew Sigel says Bitcoin could hit $180K in 2025. Bitwise has an even higher target—$200K. German analysts are more cautious, forecasting $126,773 in the next six months.
What happens next likely depends on macro trends, ETF inflows, and retail behavior.
Will Bitcoin Send or Chop?
Now that we’ve hit $112K, the big question is: do we finally send from here? Or are we just making another small all-time high before retesting $99K again?
For the past few months, Bitcoin has been stuck in a tight range. Each breakout has been followed by a pullback. If history repeats, we could see one more dip before liftoff.
Still, the fundamentals look stronger than before. Spot demand is up. Supply on exchanges is down. And institutions are quietly accumulating.
Related: $XRP is breaking out, will it be full bull mode soon?
Caution Ahead?
Even though the setup looks bullish, caution is still warranted. Glassnode data shows that nearly 99% of Bitcoin holders are now in profit. That could tempt some to take gains.
A small correction wouldn’t be surprising. In fact, it might be healthy. It could shake out weak hands and prepare the market for the next big move.
Trump’s Tariff Shock Adds Fuel
Another surprising factor driving momentum: tariffs. President Trump’s announcement of new import taxes—some as high as 40%—has rattled global markets. Investors may be turning to Bitcoin as a hedge against uncertainty.
These geopolitical events continue to act as fuel for Bitcoin’s rise. If more economic disruptions follow, the digital asset could benefit even further.
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Conclusion: Bitcoin’s Bright but Bumpy Road Ahead
Bitcoin hitting $112K is no small feat. After months of sideways action, this new all-time high shows that bulls still have some strength left.
But will Bitcoin fly past resistance and head toward $120K and beyond? Or will we see another sharp rejection like in past months?
Nobody knows for sure. What’s clear is that Bitcoin continues to shine as a top-performing asset in 2025. Whether you’re bullish or cautious, the coming weeks will be crucial.
Keep an eye on spot demand, exchange flows, and global headlines. The next big move might be just around the corner.
If you enjoyed this blog, read about the Pump Fun ICO this Saturday!
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