Bitcoin Surges 11% to New All-Time High of $111,500 on Easing Tariffs and ETF Inflows

Bitcoin (BTC) has surged to a new all-time high (ATH) of over $111,500, marking a swift and significant recovery after an initial dip. This rally was fueled by easing import tariff tensions and substantial inflows into spot Bitcoin exchange-traded funds (ETFs). The leading cryptocurrency first reached around $109,600 when U.S. equity markets opened but experienced a brief downturn following news of a weak $16 billion 20-year U.S. Treasury auction. Despite this momentary setback, Bitcoin quickly rebounded, driven by growing institutional investor interest and positive regulatory shifts.

Analysts describe this current upward move as a “structurally stronger rally.” The recent robust rebound is attributed to easing tensions in international trade policy and significant inflows into spot Bitcoin ETFs. Treasury Secretary Scott Bessent confirmed a 90-day pause in new import tariffs following successful negotiations, which has reduced some macroeconomic pressure on the markets. This announcement followed a period of increased tariffs imposed by President Donald Trump, including a 10% base tax on all U.S. imports and additional surcharges targeting China.

Investors have responded positively to these calmer trade winds. Spot Bitcoin ETFs attracted a hefty $329 million in net inflows over just the past 24 hours. Franklin Lacroix, director at SwissBorg, attributed the movement to “strong institutional inflows.” At the same time, Enclave Markets CEO Phil Wirtjes pointed to recent progress on stablecoin regulation in the U.S. Senate, contributing to buyer confidence.

The Bitcoin options market is also reflecting a renewed sense of optimism. After BTC dipped from its earlier high, activity shifted from put-side profit-taking towards more decidedly bullish positioning. In a notable sign of this sentiment, traders snapped up 1,000 contracts of the September $130,000 call option for Bitcoin, signaling a cost-effective strategy to bet on continued upside for the cryptocurrency. While front-end implied volatility remains elevated, hovering just below the 50v mark, analysts note it remains well-supported, especially given the current conditions of thin liquidity and relatively low open interest in some parts of the market.

Institutional demand continues to be a major engine behind Bitcoin’s current momentum. A firm referred to as “Strategy” recently announced a $2.1 billion offering in 10% perpetual preferred stock, with the explicit intention of using the proceeds for additional Bitcoin purchases. This move highlights the significant scale of capital now entering the Bitcoin market from larger players. At the same time, the U.S. regulatory environment for cryptocurrencies appears to be growing increasingly favorable, particularly with ongoing discussions in Congress regarding comprehensive cryptocurrency oversight. Interestingly, Bitcoin’s current upward trajectory diverges from gold’s recent behavior. While Bitcoin has decisively entered price discovery mode by hitting its new ATH, gold recently stalled out at a lower high, trading near $3,300 per ounce.