Bitcoin Breaks $112K All-Time High as Traders Exit Shorts

Bitcoin Soars to New All-Time High Above $112K as Shorts Get Liquidated

Bitcoin Breaks $112K, Bitcoin (BTC) broke past $112,000 for the first time, setting a new all-time high as global investor demand intensified and traders liquidated hundreds of millions in short positions.

The surge pushed the total crypto market capitalization to $3.47 trillion, a level not seen since June 2025. However, the market still sits slightly below its December 2024 peak of $3.73 trillion.

Traders Liquidate $200M in Shorts, Fueling Rally

Bitcoin’s price rose 5.95% over the past week, boosted by the $200 million liquidation of short positions near a critical resistance level.

Analysts at Bitfinex highlighted that clearing out overleveraged traders created a more stable base for continued growth. They explained:

“The convergence between on-chain accumulation and off-chain exchange order flow paints a compelling picture: this rally rests on solid ground, driven by real capital rather than fleeting speculative leverage.”

They added that spot buyers continue to dominate, a pattern that needs to persist for the bullish momentum to hold.

Investors Flock to Bitcoin as Tariff Tensions Rise

Just days earlier, President Donald Trump announced new tariffs of up to 40% on Malaysia, Kazakhstan, South Africa, Myanmar, and Laos, while Japan’s rate increased to 25%, effective August 1.

Rising geopolitical tension and currency concerns pushed investors toward Bitcoin, reinforcing its image as a safe-haven asset, according to Katalin Tischhauser, Head of Research at Sygnum Bank.

“Since April 2, Bitcoin has outperformed and decoupled from traditional markets during S&P 500 pullbacks. It’s gaining traction as a hedge against fiat devaluation.”

She also pointed to two landmark developments: a U.S. state’s adoption of Bitcoin reserves and the federal Bitcoin reserve created via Executive Order.

Bitcoin Flows Off Exchanges as Long-Term Holders Step In

Data from Glassnode shows that Bitcoin reserves on exchanges fell to 2.99 million BTC by May 21, down from 3.11 million BTC on March 13.

This trend signals growing long-term confidence, as holders increasingly withdraw BTC for storage. Such supply contractions often precede major rallies, according to analysts.

Key Takeaway

This record-breaking surge reflects deeper trends than just market hype. Institutional flows, regulatory developments, and shifting global sentiment are positioning Bitcoin as both a growth asset and a macroeconomic hedge.