Bitcoin Surpasses $112K, Setting New All-Time High
By: Eva Baxter
Bitcoin, the world-renowned cryptocurrency, has once again captured the spotlight by surpassing a new all-time high of $112,040 as of July 9th, setting a remarkable milestone that reflects intensified global demand amidst the broader financial dynamics. The recent surge in Bitcoin's price came shortly after the United States' announcement of new tariffs, a move by President Donald Trump that introduced tariffs up to 30% on seven different nations, effective August 1st. This geopolitical development might have caused traditional markets to be apprehensive; however, it fueled Bitcoin's momentum, with the cryptocurrency managing to shine due to its structural strength in the face of market turmoils.
From a perspective given by Jag Kooner, the head of derivatives at Bitfinex, the market responded inversely to usual expectations. Traditionally, such tariff announcements could trigger equity market weaknesses and strengthen the dollar, but the current environment is seemingly buffered by structural crypto market mechanisms like fiat onramps and spot-ETF inflows. Kooner pointed out how Bitcoin's positioning has been bolstered by significant inflows into US spot Bitcoin Exchange-Traded Funds (ETFs), with a notable $75.3 million net inflow recorded on the day preceding the record-breaking accomplishment, further propelling its price beyond former boundaries.
Moreover, market watchers have paid close attention to the developments in the macroeconomic landscape, particularly eyeing the downfall of the US Dollar Index, which registered a striking 14% decline YTD. The weakening dollar, coupled with the anticipatory stance traders hold about governmental economic decisions such as the upcoming consumer price print and the GENIUS Act Senate vote, contributes to a fertile ground for Bitcoin's monetary allure as a non-sovereign asset. The ETF bids, alongside favorable policy implications, provide robust support that helps neutralize potential market oscillations, granting Bitcoin more room for bullish runs.
As trading activities progress, the market's technical dimensions paint a picture of resilience and sustained interest. Bitcoin's short-lived consolidations between $105,000 and $110,500 have resolved into higher valuations, marking $105,000–$108,000 as crucial support zones per the analyses. Market sentiments, as reflected in options trading, showcase a bias towards further rises with major open interests vending at $115,000 and $120,000 call options. This sentiment echoes a broader market hedging against volatility, with Bitcoin remaining a preferred safeguard amidst traditional financial uncertainties. The ascent of Bitcoin past $112,000 not only represents a triumph over conventional financial levers but also reiterates the growing confidence asset holders have in digital stores of value.
