Bitcoin Surges 4% to $111,726 on Easing Trade Tensions and Institutional Interest

Bitcoin (BTC) has shattered its previous all-time high, surging past the $110,000 mark for the first time. The cryptocurrency briefly crossed $107,000 earlier in the week, hinting at a potential move higher. BTC has seen a nearly 4% increase in the past 24 hours as it tests levels above $110,000. The rally has put Bitcoin in uncharted territory, with an intraday high of $111,726 before retreating to current levels.

The surge in Bitcoin's price can be attributed to several factors, including easing trade tensions, clarity around tariffs, and Moody’s downgrade of US sovereign debt. These developments have prompted investors to seek alternative investments, driving the rally. Antoni Trenchev, co-founder of a digital asset trading platform, noted that Bitcoin is now in "blue sky territory" with tailwinds from institutional momentum and a favorable regulatory environment in the US. The rally has also been fueled by growing institutional interest, with major financial institutions like JP Morgan allowing clients to purchase Bitcoin and Coinbase being added to the S&P 500 index.

Bitcoin's rally mirrors the ongoing recovery in US equities, despite recent selloffs. The S&P 500 has risen 15% since late April, while the Nasdaq is up over 21%. Analysts attribute the increase to growing optimism about trade policies and easing trade tensions. The rally has also been supported by positive developments on the regulatory front, with key bills for stablecoin regulation clearing procedural votes in the Senate and spot Bitcoin ETFs registering steady inflows.

Texas is on the verge of becoming the third state to establish a Bitcoin reserve after the Texas Strategic Bitcoin Reserve and Investment Act was approved by the House of Representatives. The bill authorizes the state comptroller to invest in Bitcoin and other cryptocurrencies with a market cap of over $500 billion over the past 12 months. If signed by Governor Greg Abbott, Texas will join New Hampshire and potentially Arizona in establishing a Bitcoin reserve, positioning the state to diversify its financial strategy by investing in digital assets.

Bitcoin's price action has been volatile in recent weeks, with the cryptocurrency dropping over 1% on Monday and settling at $102,728. However, the price recovered on Tuesday, registering an increase of 1.36% and settling at $104,123. The price plunged to an intraday low of $101,459 on Thursday as selling pressure intensified, but it rebounded from this level to register a marginal increase and settle at $103,816. Despite the selling pressure, BTC recovered on Sunday, rising over 3% to cross $106,000 and settling at $106,489. The price continued to push higher on Wednesday, rising 2.57% to cross $109,000 and settle at $109,604. BTC surged to an intraday high of $111,726 during the ongoing session, with the price currently up nearly 2% and trading at $111,540. Analysts believe BTC’s rally could continue as it enters a price discovery phase, with the immediate target at $115,000 and a potential move past this level seeing the price reach $120,000.