Bitcoin has surged past $112,000 (approximately R2 million) this week, setting a new record high, and has continued to climb. This unprecedented climb for the original cryptocurrency, which saw a 3.1% rise to $112,009, brings its year-to-date gain close to 20%. The milestone underscores a widespread speculative momentum gripping markets, impacting everything from technology stocks to cryptocurrencies, even amidst new tariff announcements from President Donald Trump.
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The crypto rally isn’t isolated. Nvidia’s recent brush with a $4 trillion valuation (R71 trillion) helped push the S&P 500 near its own record, as fast-money investors increasingly enter the stock market.
Experts point to robust institutional demand as a primary driver. “Voracious demand from equity market vehicles such as ETFs and digital-asset Treasuries has underpinned a continuous bid for Bitcoin,” stated Spencer Hallarn, global head of OTC trading at crypto investment firm GSR. This rally is seen as a significant boost for Wall Street dealmakers and corporate executives, particularly crypto treasury companies, who are banking on Bitcoin’s ascent to unlock new financing rounds.
Bitcoin’s breakout is also seen as a validation for crypto bulls. These investors made bets after the November election that a Trump presidency would usher in a more permissive regulatory environment for digital assets.
Despite the bullish trend, digital-asset markets remain susceptible to volatile Wall Street sentiment. “Traders should stay vigilant for potential profit-taking or macroeconomic shifts that could spark corrections, but the trend is firmly bullish for now,” advised Vincent Liu, chief investment officer at crypto trading firm Kronos Research.
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Short-dated options also signal optimism, with bullish contracts expiring in late July showing elevated open interest at the $115,000 (R2.04 million) and $120,000 (R2.13 million) strike levels on crypto-exchange Deribit.
Adam Guren, founder and CIO at Hunting Hill Global Capital, highlighted the compounding effects driving Bitcoin’s rise: “BTC’s move through $112,000 reflects the compounding effects of strong ETF inflows, rising institutional adoption, and a favourable macro backdrop.” He added that with potential rate cuts back on the table and increasing global political instability, investors are seeking “hard assets.” Bitcoin benefits from both a “gold-like” safe-haven positioning and broader “risk-on” market momentum. “What’s different this cycle is that the demand is structural, regulated, and sticky,” Guren concluded, suggesting a more sustained rally than in previous cycles.
