$112K Bitcoin : What’s Driving The Latest Surge ?

On July 9, the crypto queen shattered its previous record by briefly surpassing $112,000, dispelling doubts about a slowdown in the bullish cycle. This symbolic breakthrough, occurring amid geopolitical pressures and massive movements in the derivatives markets, reignites speculation about entering a new phase of expansion in the crypto market.

A high-tension technical record

While a new drop in inflation in the United States could propel this flagship asset, this Wednesday, Bitcoin reached a new all-time high by surpassing $112,000, continuing an upward trend that began several weeks ago. This rise was marked by a 5.95 % increase over the last week.

This threshold was reached in a context of massive liquidations of short positions, estimated at $200 million, near a key technical level. This purge of short sellers triggered a wave of forced buying, fueling the bullish rally.

Analysts from the Bitfinex platform confirm this technical market reading :

The reset of overleveraged participants creates a healthier foundation for the continuation of the movement.

In clear terms, the market has eliminated excess leverage, which could allow for a more stable ascent. Several indicators support this analysis :

• $200 million in short positions liquidated around a critical resistance level ;

• A weekly increase of +5.95 % for BTC, according to published figures ;

• The total crypto market capitalization has again surpassed $3.47 trillion ;

• Bitfinex analysts emphasize a bullish dynamic “supported by real capital flows, and not by short-term speculative leverage” ;

• The rally is also driven by on-chain accumulation, visible on blockchain data analysis platforms.

These technical and market elements suggest that the current ascent is not based on transient speculative euphoria, but rather on a consolidated market structure, supported by sustained buying movements.

An international context that strengthens bitcoin’s attractiveness

While technical factors played an undeniable role in the rise of bitcoin, the overall geopolitical and economic context also seems to contribute decisively. A few days before this record, the Trump administration announced a new wave of tariffs up to 40 % on several countries, including Malaysia, Kazakhstan, Myanmar, Laos, and South Africa.

Japan, for its part, sees its tariffs raised to 25 %. This unilateral decision, effective from August 1, rekindles trade tensions and generates global economic uncertainty. In this climate, bitcoin is increasingly perceived as a safe-haven asset. Katalin Tischhauser, head of research at Sygnum Bank, observes that since April 2, “bitcoin outperforms and tends to decouple from traditional markets, especially during corrections of the S&P 500”.

This perception of bitcoin as a shield against monetary instability is reinforced by regulatory signals in the United States. Indeed, one U.S. state has adopted a law establishing a bitcoin reserve, echoing a prior federal initiative.

At the same time, Glassnode data show a continuous decline in BTC reserves on exchanges, falling from 3.11 million BTC in March to 2.99 million in May. This contraction suggests a long-term holding strategy by investors, potentially foreshadowing a supply shock. For Tischhauser, this dynamic indicates a “sustained confidence” from Bitcoin holders.

If this trend toward financial disintermediation and accumulation persists, bitcoin could consolidate its status as an alternative to fiat currencies, especially in countries exposed to currency depreciation or geopolitical instability. The psychological threshold of $120,000 could thus become the next target for the market thanks to the efforts of the whales.