The price of Bitcoin has reached a new record high, driven by increasing demand from global investors for risk assets, along with the liquidation of $200 million in short BTC positions near a key resistance level.
On Wednesday, the price of Bitcoin first surpassed the $112,000 threshold, rising 5.95% in the past week. This increase helped the total cryptocurrency market capitalization recover to $3.47 trillion, a level last recorded in June 2025.
However, the value of the cryptocurrency market still remains lower than the all-time high of $3.73 trillion set in December 2024.
A new all-time high for Bitcoin emerged just days after President Trump announced a series of new taxes of up to 40% on Malaysia, Kazakhstan, South Africa, Myanmar, and Laos. Meanwhile, Japan raised its tax rate to 25%, and the new tax rates will take effect from August 1.
According to analysts from the Bitfinex exchange, Bitcoin's price momentum is benefiting from the rebalancing of 'over-leveraged components,' creating a 'solid foundation for continuation.' They said: 'The convergence between on-chain accumulation and off-chain trading order flow creates an appealing picture: this price rally has been built on a solid foundation, supported by real capital flows rather than just short-term speculative leverage.'
To maintain a positive outlook in the coming weeks, analysts emphasize that the prevailing pattern of spot buyers needs to continue.
Bitcoin and the safe-haven position
According to Katalin Tischhauser, head of research at digital asset bank Sygnum Bank, the upward trend of Bitcoin since Trump's Liberation Day announcement on April 2 has been driven by its increasing recognition as a safe-haven asset. She stated: 'Since April 2, Bitcoin has outperformed and increasingly decoupled during S&P 500 pullbacks. This is supported by Bitcoin's rising position as a safe-haven asset against fiat currency devaluation, which is also confirmed by the first state in the U.S. signing legislation on Bitcoin reserves, following the executive order on federal Bitcoin reserves.'
Additionally, Bitcoin reserves across all exchanges have been continuously declining since late April, indicating 'long-term confidence' from Bitcoin investors, which could lead to a price rally due to supply shortages. Data from Glassnode shows that Bitcoin reserves across all exchanges have dropped to 2.99 million BTC as of May 21, down from over 3.11 million BTC on March 13.