Bitcoin Surges 100% to $112,000 as Shorts Liquidated and Tariffs Announced

Bitcoin's price surged to an unprecedented high, exceeding $112,000, driven by a surge in global investor demand for risk assets. This rally was further fueled by a significant liquidation of $200 million in BTC shorts, which occurred near a critical price point. The liquidation of these short positions likely contributed to the upward momentum, as traders who had bet against Bitcoin were forced to close their positions, buying back the cryptocurrency to cover their losses. This dynamic created a buying pressure that propelled Bitcoin to its new all-time high.

The liquidation event underscores the volatility and speculative nature of the cryptocurrency market, where large-scale trading activities can have a profound impact on price movements. As Bitcoin continues to attract more institutional and retail investors, its price trajectory remains a subject of intense scrutiny and debate among market participants. Bitcoin’s price appreciation helped the total crypto market capitalization recapture $3.47 trillion, which marks an over four-month high last seen in June 2025. Yet, the crypto market’s value remains below the all-time high of $3.73 trillion recorded in December 2024.

Bitcoin’s new all-time high occurred just days after President Trump announced a fresh round of tariffs of up to 40% against Malaysia, Kazakhstan, South Africa, Myanmar and Laos. Meanwhile, Japan saw its tariff rate lifted to 25% and the new rates go live on Aug. 1. Bitcoin’s price momentum is benefiting from a reset in “over-leveraged participants” that created a “healthier foundation for continuation,” analysts from Bitfinex exchange told Cointelegraph, adding: “The convergence between on-chain accumulation and off-chain exchange order flow paints a compelling picture: this rally has been built on solid ground, supported by real capital flows rather than short-lived speculative leverage.”

“To maintain a constructive outlook for the coming weeks, this pattern of spot buyer dominance must persist,” explained the analysts. Bitcoin rally driven by increasing safe haven status: Sygnum Bank research lead. Bitcoin’s uptrend since Trump’s Liberation Day announcement on April 2 is driven by its growing recognition as a safe-haven asset, according to Katalin Tischhauser, the head of research at digital asset banking group Sygnum Bank. Since April 2, Bitcoin has been “outperforming as well as increasingly decoupling on days when the S&P 500 corrected,” she told Cointelegraph, adding: “This has been supported by Bitcoin’s increasing status as a safe haven asset in the face of fiat debasement, also confirmed by the first US state signing a Bitcoin reserve bill into law, following the federal Bitcoin reserve established by Executive Order.”

Bitcoin exchange reserves have also been in a steady decline since late April, which is a sign of “long-term confidence” from Bitcoin investors that may lead to a supply shock-driven rally, according to Tischhauser. Bitcoin reserves across all exchanges fell to 2.99 million BTC on May 21, down from over 3.11 million BTC on March 13, Glassnode data shows. This decline in exchange reserves indicates that investors are holding onto their Bitcoin rather than selling, which can create a supply shock and drive up the price. The steady decline in exchange reserves suggests that investors are confident in the long-term prospects of Bitcoin and are not looking to sell their holdings in the near future. This trend, combined with the liquidation of short positions, has contributed to the recent price surge and may continue to support Bitcoin’s price in the coming weeks.