🔥🔥🔥Bitcoin breaks 112,000, who is driving the 2.22 trillion market value behind it?
On the morning of July 10, the cryptocurrency market welcomed a historic moment. Bitcoin's price suddenly surged, showing a strong upward trend, successfully breaking through the previous high of $111,999 set on May 22, and setting a new historical high of nearly $112,000 per coin, with a daily increase of nearly 3%. This groundbreaking rise caused Bitcoin's market value to climb to nearly $2.22 trillion, with a cumulative increase of 19% since the beginning of the year.
The soaring price of Bitcoin triggered a dramatic reaction in the market. Within an hour of the rapid price increase, more than $200 million in short positions were liquidated. Spencer Harlan, head of global over-the-counter trading at cryptocurrency investment firm GSR, pointed out that the strong demand for financial market instruments such as exchange-traded funds (ETFs) and digital asset government bonds supported the continued buying of Bitcoin. As Bitcoin broke through the key price point, bullish contracts expiring at the end of July on the cryptocurrency derivatives exchange Deribit showed that the market had a strong interest in strike prices of $115,000 and $120,000, indicating that the market is still full of expectations for Bitcoin's subsequent upward space.
From a more macro perspective, Bitcoin's new high this time is not an isolated event. Recently, risk assets have generally rebounded, with a strong rally led by tech stocks such as Nvidia driving up market speculation. Although U.S. President Trump issued a new tariff announcement, it did not deter traders' risk appetite, and Bitcoin's rise was achieved in such a macro environment. In addition, unlike previous rounds that mainly relied on retail investors, the current round of Bitcoin's rise is backed by continuous inflow of institutional funds, making this demand model more stable compared to the speculative buying in history. Adam Guren, Chief Investment Officer of Hunting Hill, stated that Bitcoin breaking $112,000 reflects the combined effect of ETF fund inflows, rising institutional adoption, and a favorable macro environment.
