Bitcoin (BTC) smashed its previous all-time high and crossed the $110,000 mark for the first time. The flagship cryptocurrency had teased a move higher earlier in the week when it briefly crossed $107,000. BTC is up nearly 4% in the past 24 hours as it tests the waters above $110,000. BTC’s rally puts the flagship cryptocurrency in uncharted territory as it enters a period of price discovery. Bitcoin hit an intraday high of $111,726 earlier in the session before retreating to current levels. Bitcoin (BTC) Surges To New All-Time High Bitcoin (BTC) shattered the $110,000 level and surged to a new all-time high of $111,726 as market sentiment improved. The flagship cryptocurrency had teased a move past this level earlier in the week as markets recovered from the trade war and tariff-induced selloffs. Bitcoin’s rally was driven by several factors, including easing trade tensions, clarity around tariffs, and Moody’s downgrade of US sovereign debt, prompting investors to seek alternative investments. Antoni Trenchev, co-founder of digital asset trading platform Nexo, stated, “Now that January's high has been surpassed - and the 50 percent upside from April's lows has been achieved - bitcoin enters blue sky territory with tailwinds in the form of institutional momentum and a favorable U.S. regulatory environment.” Market watchers also highlighted growing institutional interest and participation as another driver of the rally. JP Morgan CEO Jamie Dimon, a longtime crypto skeptic, recently said the bank would allow its clients to purchase Bitcoin. Coinbase was also added to the S&P 500 index, further boosting investor sentiment. “We're still in year four of the bitcoin price cycle - the year after the bitcoin halving when miner rewards are slashed in half - which historically means its best days are still ahead of it and - while macro uncertainty and the threat of further volatility remains, a target of $150,000 in 2025 is still very much on the cards.” What’s Behind The Bitcoin (BTC) Rally? BTC soared past its previous all-time high, set at the beginning of the year, rising to $111,726 after registering a sharp increase of above 4% in the past 24 hours. Bitcoin has risen over 23% in the past month, posting a sharp reversal from April’s downturn. The flagship cryptocurrency’s rally mirrors the ongoing recovery in US equities despite Wednesday’s selloff. The S&P 500 has risen 15% since late April, while the Nasdaq is up over 21%. Analysts have attributed the increase to growing optimism about President Trump’s trade policies and easing trade tensions between the US and China. Texas Approves Bitcoin Reserve Bill Texas is close to becoming the third US state to establish and manage a Bitcoin reserver after the Texas Strategic Bitcoin Reserve and Investment Act, SB 21, was approved by the House of Representatives with a vote of 101-42. The bill will now be sent to Governor Greg Abbott for approval. The bill authorizes the state comptroller to invest in Bitcoin and other cryptocurrencies with a market cap of over $500 billion over the past 12 months. Bitcoin is the only asset that meets this criteria. The bill also directs the creation of a formal Bitcoin reserve and positions the state to diversify its financial strategy by investing in digital assets. If signed, Texas will join New Hampshire and potentially Arizona to become the only US state to establish a Bitcoin reserve. However, governors in Arizona and Montana voted to block similar proposals, citing extreme volatility in the crypto markets. Bitcoin (BTC) Price Analysis Bitcoin (BTC) rallied to a new all-time high after finally crossing $110,000 and reaching $111,726. The move was driven by growing optimism around crypto regulation, institutional interest in BTC , and easing trade tensions. A broader rally in the US markets also buoyed investor sentiment. James Butterfill, head of research for crypto-focused asset manager CoinShares, stated, “The rally was also helped along by broader macro concerns, including Moody’s recent downgrade of U.S. sovereign debt, which added to the narrative of Bitcoin as a hedge against fiat instability.” There have also been positive developments for crypto on the regulatory front, with the GENIUS Act, a key bill for stablecoin regulation, clearing a key procedural vote in the Senate. Spot Bitcoin ETFs have also registered steady inflows, according to analysts. BTC started the previous week in the red, dropping over 1% on Monday and settling at $102,728. The price recovered on Tuesday, registering an increase of 1.36% and settling at $104,123. BTC was back in the red on Wednesday, registering a marginal decline and settling at $103,568. The price plunged to an intraday low of $101,459 on Thursday as selling pressure intensified. However, it rebounded from this level to register a marginal increase and settle at $103,816. Price action turned bearish on Friday and Saturday as BTC registered marginal declines and settled at $103,235. Despite the selling pressure, BTC recovered on Sunday, rising over 3% to cross $106,000 and settling at $106,489. Source: TradingView The price plunged to an intraday low of $102,135 on Monday as selling pressure intensified. However, it rebounded from this level to reclaim $105,000 and settle at $105,572, ultimately registering a decline of nearly 1%. Market sentiment turned bullish on Tuesday as BTC rose 1.21% and settled at $106,854. The price continued to push higher on Wednesday, rising 2.57% to cross $109,000 and settle at $109,604. BTC surged to an intraday high of $111,726 during the ongoing session. The price is currently up nearly 2% and trading at $111,540. Analysts believe BTC’s rally could continue as it enters a price discovery phase. The immediate target is $115,000, but a move past this level could see the price reach $120,000. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
