Bitcoin Hits All-Time High $112,152 on ETF Inflows and Tariff Tensions

Bitcoin's price surged to an unprecedented all-time high of $112,152, driven by a confluence of factors including significant inflows into exchange-traded funds (ETFs) and escalating global tariff tensions. This milestone, which surpassed the previous peak of $111,980 set in May, underscores the growing institutional demand for the cryptocurrency. The rally was fueled by over $1.2 billion in net inflows into spot Bitcoin ETFs since the start of July, with BlackRock’s iShares Bitcoin Trust (IBIT) alone holding 3.5% of BTC’s total supply. This institutional fervor is complemented by a favorable macroeconomic environment, where a recent drop in U.S. inflation has bolstered Bitcoin's appeal as a hedge against fiat currency depreciation, particularly in regions facing economic uncertainty.

The Trump administration's crypto-friendly policies, including plans for a strategic Bitcoin reserve, have further fueled optimism in the market. Market dynamics have also played a critical role, with a $480 million liquidation of short positions accelerating the rally and creating a "short squeeze" that forced traders to buy back at higher prices. The breakout above the $110,000 resistance level, which had capped previous rallies, was a pivotal moment. Analysts noted a bullish pennant pattern on 4-hour charts, predicting the surge to $112,000. Bitcoin’s rally has lifted the entire crypto market, with the total market capitalization reaching $3.47 trillion, a level last seen in June 2025.

However, not all perspectives are uniformly bullish. Despite the record price, some analysts caution that Bitcoin's trading activity remains "oddly quiet," suggesting underlying complexities in the market. This tempered view underscores the volatility inherent in cryptocurrencies, even as institutional backing grows. Geopolitical tensions, such as Japan’s 25% tariff increase effective August 1, could introduce uncertainty, though Bitcoin’s safe-haven status may help mitigate it.

Analysts are optimistic about Bitcoin's trajectory, with some predicting it could surpass $150,000 by the end of the year. Sidney Powell, CEO of Maple Finance, noted that Bitcoin has performed far better than doom-and-gloom predictions, and would not be surprised to see it surpass $150,000 by year’s end. Economist Timothy Peterson emphasized the critical timing of the breakout, noting that without this surge, the market might have faced a delay until October. Other analysts, citing wave count analysis and bullish patterns, predict a near-term target of $120,000, with some eyeing $130,000 to $150,000 in the coming months. Yet, risks remain. Bitcoin’s volatility has historically preceded large moves, but a failure to sustain above $110,000 could trigger a pullback.