Bitcoin Surges 7.32% to $110,392 Driven by Institutional Demand

Bitcoin experienced a brief surge above $110,000, marking a significant milestone in its recent price trajectory. This surge was part of a broader market rally, with Bitcoin closing above the $108,000 mark the previous week, indicating a 7.32% increase and setting new records. The cryptocurrency's price rallied 5% over the last 48 hours, reaching an intraday high of $110,392 on July 3. This rally was driven by favorable global liquidity trends and institutional inflows, which have been a consistent theme in the market's recent performance.

The surge above $110,000 highlighted the differences in how Bitcoin trades across fiat and stablecoin markets. On the largest exchange by trading volume, BTCUSD held a consistent but narrow premium over BTCUSDT in the days leading up to the move. This premium averaged $36.33, or around 0.034%, and its persistence over the previous weeks indicated subtle demand preferences and liquidity flows that are often overlooked when analyzing the entire market. Between June 29 and July 3, data covering 5-minute candles on both pairs showed that BTCUSD traded higher than its USDT equivalent 97.7% of the time. The spread peaked at 0.103% on June 30 during the morning and inverted briefly just a handful of times. Most negative prints clustered around 21:00 UTC, which could indicate lower fiat inflows or higher stablecoin usage in late trading.

The spread narrowed sharply during the morning’s breakout. As Bitcoin surged past $110,000 around 09:40 UTC, the premium compressed to just 0.013%. This suggests liquidity rapidly shifted toward the BTC-USDT book, or arbitrageurs moved quickly to close the gap as order books thinned. This is in line with historical breakout patterns, where volatility forces alignment between trading pairs to avoid slippage. Intraday patterns further confirm the role regional flows have in shaping trading. BTCUSD consistently outpaced USDT between 08:00 and 14:00 UTC, core trading hours. This points to a modest tilt toward fiat-based execution from desks operating in jurisdictions where dollar rails are preferred or more accessible.

The surge above $110,000 also signaled strong institutional demand. The Coinbase Bitcoin Premium spiked, indicating that institutional investors were actively buying Bitcoin as it approached the $110,000 mark. Analysts predicted that this could mark the beginning of a price discovery phase, where the market tests new resistance levels and potentially sets new all-time highs. A confirmed daily close above $110,000 would turn resistance into a level of support, opening the door to a rapid advance to $135,000 and higher. This would be a significant milestone for Bitcoin, as it would represent a new all-time high and further cement its status as a leading cryptocurrency.

The recent rally in Bitcoin's price has been driven by a combination of factors, including favorable global liquidity trends, institutional inflows, and strong demand from investors. The surge above $110,000 is a testament to the cryptocurrency's resilience and its ability to attract investment from a wide range of sources. As the market continues to evolve, it will be interesting to see how Bitcoin's price responds to new challenges and opportunities.