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Bitcoin rose on Thursday, though it hovered below its record high of nearly $112,000 that was briefly touched a day earlier. Profit-taking and fresh concerns over U.S. trade tariffs kept investor enthusiasm in check, despite the cryptocurrency hitting an all-time high earlier in the week.
Bitcoin Hits Record High on Institutional Demand
Bitcoin surged 2.1% to $110,961.70 as of 01:48 ET (05:48 GMT), following its brief jump to a record high of $111,988.20 on Wednesday. However, it pared some of those gains as investors booked profits at the peak levels.
The milestone is significant, as it coincides with growing institutional interest in Bitcoin. Increasing allocations from corporate treasuries and institutional investors, including asset managers moving Bitcoin into their portfolios and exchange-traded funds (ETFs), have driven up demand. Strategy Inc (NASDAQ: MSTR), the most visible institutional investor in Bitcoin, is joined by newer entrants such as GameStop Corp (NYSE: GME), which recently announced board-approved Bitcoin purchases.
Trump Media (NASDAQ: DJT) has also filed with the U.S. Securities and Exchange Commission to launch a “Crypto Blue Chip ETF,” reinforcing the structural tailwinds supporting Bitcoin. These developments, including ETF inflows, corporate treasury expansion, and a supportive U.S. policy environment, have boosted Bitcoin’s appeal as an institutional-grade asset.
Trump Tariff Threats Limit Bitcoin’s Breakout
However, Bitcoin’s breakout on Wednesday was limited by renewed concerns about U.S. trade policy. President Donald Trump’s tariff threats, including a 50% tariff on copper imports and reciprocal tariffs on Brazil, put pressure on markets, including Bitcoin. The tariffs are set to take effect on August 1, further complicating the trade outlook and adding uncertainty to the broader economic environment.
Investors are also focused on the upcoming “Crypto Week,” which starts on July 14. During this time, U.S. lawmakers are expected to push forward with at least three major bills aimed at regulating digital assets. This regulatory push could influence Bitcoin’s future trajectory.
Altcoins Rally Amid Bitcoin’s Record Performance
While Bitcoin experienced some profit-taking, altcoins saw significant gains on Thursday. Ethereum (ETH), the second-largest cryptocurrency, jumped 5.7% to $2,776.81, leading the altcoin rally. XRP climbed 4.1% to $2.42, Solana rose 2.6%, and Cardano gained 4.2%. Polygon surged by 5%, while meme tokens also saw positive movement, with Dogecoin increasing by 5% and $TRUMP jumping 6.1%.
In summary, Bitcoin’s impressive rally was driven by strong institutional demand, although concerns over trade tariffs and the Federal Reserve’s stance on interest rates tempered its upside. As the market braces for key developments in U.S. trade policy and upcoming crypto regulations, Bitcoin and altcoins will likely remain sensitive to these external factors.
