Bitcoin Surges 3.3% to $111,878 on Institutional Buying, Trump Policies

Bitcoin's price recently surged past 111,000 dollars, setting a new historical high. This surge was driven by a combination of supportive policies from the Trump administration and a significant influx of institutional capital. The cryptocurrency market has been experiencing a sustained bullish sentiment, with Bitcoin becoming a focal point for global investors.

On Thursday, Bitcoin's price reached an all-time high of 111,878 dollars, marking a 3.3% increase. Although the price later retreated slightly, the overall upward trend remained strong. Other cryptocurrencies also experienced gains, with Ethereum rising by as much as 7.3% at one point.

Investor optimism was partly fueled by a stablecoin bill proposed in the U.S. Senate, which was seen as a positive signal that the Trump administration might provide a clearer regulatory framework for the cryptocurrency industry. Trump's previous statements supporting the cryptocurrency sector have further cemented his image as a pro-cryptocurrency candidate.

MicroStrategy's continued purchase of Bitcoin has also contributed to this upward trend. The company has accumulated Bitcoin worth over 600 billion dollars and recently filed to issue up to 21 billion dollars in 10% perpetual preferred stock to further increase its Bitcoin holdings. This move underscores the strong institutional confidence in Bitcoin.

Additionally, a new company, Twenty One Capital, initiated by Tether, SoftBank, and Cantor Fitzgerald, aims to replicate MicroStrategy's business model by creating a corporate treasury centered around Bitcoin. Similarly, Strive Enterprises, co-founded by Vivek Ramaswamy, is merging with Asset Entities Inc., a Nasdaq-listed company, to establish a Bitcoin reserve company.

Unlike previous bull markets, this surge is not solely driven by market sentiment but is based on a sustained and quantifiable supply-demand imbalance. Bitcoin's performance has also diverged significantly from other altcoins, with Bitcoin's year-to-date gain reaching 18% while the index tracking major altcoins has declined by approximately 40%.

In the investment tools sector, 12 Bitcoin spot ETFs in the U.S. market have attracted substantial funds, with approximately 42 billion dollars in net inflows in May alone. This influx of capital highlights the growing institutional interest in Bitcoin.

In the options market, traders recently opened high-strike Bitcoin call options on the Deribit exchange, with significant holdings in contracts expiring on June 27th at strike prices of 110,000 dollars, 120,000 dollars, and 300,000 dollars. This activity indicates a strong market expectation for further Bitcoin price increases. Analysts suggest that the correction from January's high to April's low of 75,000 dollars was a technical adjustment within the bull market, and once Bitcoin stabilizes above 110,000 dollars, the next target could be 125,000 dollars.