Bitcoin Surges Past Previous High,Defying skeptics
Bitcoin has broken its May record,soaring above $111,970. This move came despite bearish signals and a $35 billion short interest. The rally was fueled by ETF investments and corporate adoption.
On July 9, Bitcoin (BTC) climbed over 2%, surpassing its previous all-time high. Skeptics were wrong as technical indicators showed bearish signs. The cryptocurrency’s rise indicates that institutional investments, not retail trading, now drive crypto trends. It entered uncharted territory amid a complex macro surroundings, defying short-term pessimism.
Traditionally, crypto rallies were driven by halving events and retail enthusiasm. Now,durable capital flows lead the charge. The $35 billion in short positions became a catalyst for the rally. ETF inflows and corporate purchases created a supply squeeze, forcing short sellers to cover their positions. Spot Bitcoin ETFs absorbed 245,000 BTC in Q2, about 1% of the total supply.
Standard Chartered analysts term this a “new flow regime,” where institutional absorption outpaces new supply from miners by a 3:1 margin. Broader risk markets have also firmed around a resilient U.S. economy. The June nonfarm payrolls report added 147,000 jobs,with the unemployment rate falling to 4.1%. This prompted a sharp repricing in interest rate expectations. CME FedWatch now shows just a 5% chance of a July cut, down from 24% earlier in the week. While tighter policy would typically pressure risk assets, Bitcoin’s rise alongside equities suggests it’s being repriced as a liquidity magnet.
Geopolitics added unexpected tailwinds. The trump governance imposed tariffs on six nations, including Algeria and Iraq. Historically, such measures trigger inflation and equity sell-offs. Though, Bitcoin’s calm suggests traders aren’t panicking yet. According to CoinShares’ James Butterfill,this may be a temporary illusion. Nansen’s Nicolai Sondergaard cautions against overreading the frenzy.
