Bitcoin Hits a New All Time High of $112,000

Bitcoin has reached a historic milestone, surging to a new all-time high of $112,000, up 3.1% in a single day and now 19% higher year-to-date. The previous record of $111,970 was set on May 22, 2025, but recent market momentum pushed it firmly into uncharted territory.

The major catalyst? Institutional inflows. U.S. spot Bitcoin ETFs alone have seen positive inflow lately. Corporate entities like France’s Blockchain Group and the UK’s Smarter Web Company have also increased their BTC holdings, signaling growing confidence from traditional businesses.

Adding fuel to the rally is a tightening supply dynamic. With over 80% of Bitcoin supply held by long-term holders, the liquid BTC in circulation is dwindling fast. This scarcity effect is magnified by continued accumulation and HODLing behavior across the board.

Macroeconomic Winds Favor Risk Assets

Beyond institutional demand, broader economic conditions have tilted in Bitcoin’s favor. The U.S. M2 money supply rose 4.5% year-over-year to $21.94 trillion in May, according to Standard Chartered. This expansion signals looser monetary policy, encouraging greater appetite for risk-on assets like BTC.

At the same time, easing geopolitical tensions have reduced market uncertainty, creating a perfect backdrop for Bitcoin to break past its $110,000 resistance, where it had previously been capped due to profit-taking. The breakout has renewed optimism in crypto circles, with many now calling for a “summer of strength.”

Eyes on $120K: What Comes Next?

Market watchers are now looking ahead. Standard Chartered’s Geoff Kendrick projects BTC hitting $135,000 in Q3 and $200,000 by year-end, thanks to continued institutional momentum and a favorable regulatory climate under the Trump Administration.

Bitwise and Seasonal Tokens share similar targets, while Polymarket bettors assign a 75% probability of BTC hitting $120K this year. However, not all are bullish—economist John Hawkins warns of a potential correction to $80,000 if macro or regulatory shocks emerge.

For now, Bitcoin’s rally marks a defining moment. Whether this is the start of another leg up or a temporary peak, one thing is clear—Bitcoin has matured, and the world is watching.