On Wednesday, Bitcoin (BTC) reached a record-breaking high of $112,000, marking a 5.95% increase over the past week.
This rally was driven in part by a $200 million liquidation of short positions, signaling that bears were caught off guard near a key resistance level.
Bitcoin’s Price Movement
Source: CoinGecko
Bitcoin’s price movement also helped restore total cryptocurrency market capitalization to $3.47 trillion, a level not seen since June 2025. However, the total crypto market still trails behind its December 2024 all-time high of $3.73 trillion.
Bitcoin’s recent rally came shortly after President Trump announced a new wave of tariffs. Countries like Malaysia, Kazakhstan, South Africa, Myanmar, and Laos are now facing up to 40% tariffs, with Japan’s rate raised to 25%.
These changes are set to take effect on August 1st, potentially triggering global economic shifts that make Bitcoin increasingly attractive as a hedge.
According to Bitfinex analysts, this rally appears fundamentally different from past speculative surges. A “reset in over-leveraged participants” has created what they describe as a “healthier foundation for continuation.”
They add:
“The convergence between on-chain accumulation and off-chain exchange order flow paints a compelling picture: this rally has been built on solid ground.”
Bitfinex also notes that continued spot buying is essential to maintain bullish momentum over the coming weeks.
Katalin Tischhauser, Head of Research at Sygnum Bank, links the current Bitcoin rally to its evolving role as a safe-haven asset, particularly after Trump’s Liberation Day speech on April 2.
This growing trust is partly due to concerns over fiat currency debasement, and more importantly, the U.S. formally adopting a Bitcoin reserve bill, a move seen as highly symbolic and impactful for investor sentiment.
Another key factor supporting bullish Bitcoin price prediction models is the steady decline of Bitcoin on exchanges.
As of May 21st, only 2.99 million BTC remain on centralized platforms, down from over 3.11 million BTC on March 13th, according to Glassnode. This trend reflects strong long-term investor confidence and hints at a possible supply shock rally.
Bitcoin Balance On Exchanges, Year-To-Date
Source: Glassnode
Many analysts believe the current market setup favors continued upside for Bitcoin. With macroeconomic uncertainty, increasing institutional acceptance, and shrinking supply, Bitcoin price predictions for Q3 and Q4 2025 lean bullish.
Still, some caution is warranted. The cryptocurrency market remains highly volatile, and short-term corrections are likely even in a broader uptrend.
As of July 2025, Bitcoin has reached a new all-time high of $112,000, setting a new benchmark for the leading cryptocurrency.
Bitcoin’s price is rising due to increased institutional adoption, macroeconomic instability, and a decline in exchange reserves, which could result in a supply shock. Large-scale short liquidations have also fueled recent spikes.
Geopolitical and economic policies like tariff hikes often drive investors toward alternative assets. Bitcoin, as a decentralized and scarce asset, is benefiting from growing demand as a financial hedge.
Yes, according to recent research and performance trends. Bitcoin is increasingly seen as a diversifier and store of value, particularly during stock market corrections and fiat currency concerns.
While no forecast is guaranteed, many analysts predict that Bitcoin could test $120,000–$130,000 in Q3 2025, assuming macro trends and demand strength continue.
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