Bitcoin Surges 28% Yearly, Hits $121,000 All-Time High After Trump Tariff Announcement

Bitcoin has surged past $121,000, marking a significant milestone as it reaches a new all-time high. This surge follows a 28% gain for the year, driven in part by President Trump's announcement of a 30% tariff on the EU and Mexico. The move has sparked considerable interest and speculation within the cryptocurrency community.

To achieve this new high, Bitcoin had to overcome a resistance zone between $118,000 and $120,000, an area characterized by dense selling pressure. This resistance zone has been a critical barrier for Bitcoin, and its breach indicates a strong bullish sentiment among investors. The liquidation intensity data from Coinglass reveals that if Bitcoin had fallen below $118,000, the cumulative long liquidation intensity of mainstream centralized exchanges (CEXs) would have reached $669 million. Conversely, the cumulative short liquidation intensity would have reached $1.061 billion if Bitcoin had surged past $121,000. This data underscores the significant impact that price movements can have on market liquidity and investor positions.

The liquidation chart, which shows the relative importance of each liquidation cluster, provides insights into the potential reactions of the market to price changes. A higher "liquidation bar" indicates that when the price reaches a certain point, it will generate a more intense reaction due to the liquidity wave. This dynamic highlights the volatility and sensitivity of the cryptocurrency market, where sudden price movements can trigger substantial liquidations and market reactions.

The surge in Bitcoin's price has also been accompanied by strong inflows into spot Bitcoin exchange-traded funds (ETFs), with inflows exceeding $1 billion for two consecutive days. This signals a robust appetite from institutional investors, further bolstering the cryptocurrency's upward trajectory. The new all-time high of $121,000 has set a new benchmark for Bitcoin, reflecting its growing acceptance and integration into the global financial system. As the cryptocurrency continues to gain traction, it remains to be seen whether it can sustain this momentum and reach even higher levels in the coming weeks and months.