Why is Digital currency Rising? BTC Temporarily Reaches New ATH of $112k
What’s driving the rise in crypto? 
Bitcoin ▲2.20% officially surged into new territory on Wednesday, posting a database high of $112,040 on Bitstamp following a 3% increase during the day.
This surge boosted Bitcoin’s crypto market capitalization to $2.22 trillion, while the overall trading market capitalization soared to $3.47 trillion, levels not witnessed since mid-2025.
Skepticism around Bitcoin persists with some Twitter users commenting: “People anticipate that BTC will perform as it has over the past decade for the next decade. A prolonged power outage or a Chinese lab wielding a quantum computer could decimate your holdings.”
Nonetheless, Bitcoin continues to outpace the S&P and most altcoins, steadfast in following its own narrative.
Tariffs, Interest Rate Speculations, and Bitcoin’s Return as a Hedge
The increase coincided with President Donald Trump’s recent declaration of new tariffs affecting multiple nations including Japan, South Africa, and Malaysia, with some tariffs hitting as high as 40%. Analysts at 99Bitcoins suggest that this geopolitical tension has enhanced Bitcoin’s allure as a macroeconomic hedge.
This key milestone also led to an avalanche of liquidations amounting to $484.7 million overall, with $223 million coming strictly from BTC shorts.
“Bitcoin’s evolving reputation as a safe haven asset amid fiat devaluation… affirmed by the first US state signing a BTC reserve legislation.” — Katalin Tischhauser, Sygnum Bank
I don’t believe most people grasp the $BTC surge we are on the verge of witnessing… pic.twitter.com/GgIanG2Put
— Coinvo (@ByCoinvo) July 8, 2025
Bitcoin’s upward trajectory, which took off after Trump’s Liberation Day address in April, has been in line with a growing divergence from conventional assets.
Research from Sygnum Bank indicates that BTC has increasingly separated from the S&P 500, particularly during stock crypto market pullbacks.
Reset in the Derivatives Crypto market Could Encourage Continuation
Backing the breakout is a notable drop in BTC reserves on exchanges, a significant indicator that long-term investors are restricting token supply. Data from Glassnode reveals that trading network holdings decreased from 3.11 million BTC in March to 2.99 million Bitcoin by late May.
This reduction in available supply indicates a possible impending circulating supply shock.
Anthony Pompliano told CNBC:
“Every Wall Street institution and asset management firm will embrace #Bitcoin and crypto.
They’ll have no alternative!” pic.twitter.com/YamBZOsWib
— Bitcoin News (@BitcoinNews21M) June 26, 2025
Wednesday’s price jump followed a significant liquidation of excessively leveraged short positions, eliminating weak hands and paving the way for a more robust trend.
At the same time, Bitcoin’s trading volume via exchanges reached $28.18 billion, reflecting a considerable surge in activity as we approach mid-July. With trader sentiment strengthening and institutional investments re-emerging, the trading market may be on the cusp of a new bullish cycle.
What Lies Ahead for BTC? (Positive Prospects)
Bitcoin is currently only 7% shy of the entire crypto market’s all-time high capitalization of $3.73 trillion, established in December 2024. With reduced short interest and macroeconomic conditions leaning toward tangible assets, the forthcoming weeks will be crucial.
Provided that spot transactions remain predominant and exchange reserves keep declining, BTC seems well-situated to further widen its advantage, and, hopefully for alternative coin investors, lift the entire crypto market alongside it.
Join the 99Bitcoins Update Discord for the Latest Crypto market Insights
Key Insights
- Bitcoin officially achieved new heights on Wednesday, reaching an all-time peak of $112,040 on Bitstamp after a 3% rise during the session.
- Attention is focused on Powell this month as inflation persists and labor indicators soften.
The article Why is Crypto Going Up? Bitcoin Briefly Touches New ATH of $112k originally appeared on 99Bitcoins.
