- Bitcoin broke its record with a brief surge past $112,000.
- Analysts say sidelined capital may fuel a larger breakout.
- ETF inflows and rate cut bets are boosting investor optimism.
Bitcoin broke its all-time high by just over $100 on Wednesday, capping a blistering $3,000 rally that pushed it an inch past $112,000.
Now, analysts say the move could kick off a much larger breakout, driven by accelerating corporate demand, investments into exchange-traded funds, and an influx of even more institutional capital still sitting on the sidelines.
“Bitcoin has reached a new all-time high on the back of relentless demand from investors and corporations,” said Mauricio Di Bartolomeo, co-founder of Ledn. “In the last 30 days alone, at least 21 US companies have announced new plans to raise and deploy an estimated $3.5 billion into their bitcoin treasuries.”
Expectations for rate cuts later this year are also buoying investor appetite. Lower interest rates incentivise investors to bet on risk-on assets like cryptocurrencies.
Interest traders now give a 63% chance that the Federal Reserve will lower interest rates by September and an 83% chance by October, according to CME FedWatch data.
Meanwhile, demand from spot Bitcoin ETFs remains strong. Net inflows have topped $15 billion this year, with BlackRock’s IBIT and Fidelity’s FBTC leading the charge.
“As trade tensions flare and altcoins stumble, institutions are treating Bitcoin as a macro hedge and a maturing asset class,” Roshan Roberts, CEO of OKX US, told DL News. “July will test markets, but Bitcoin looks built for it.”
Other analysts also expect the rally to steepen.
Bitwise, Bernstein, and Standard Chartered have all projected Bitcoin could reach at least $200,000 by year-end, driven by pension fund allocations, new regulatory clarity in the US, and a wave of “Strategy copycats” following Michael Saylor’s lead.
Bitcoin has pulled back slightly since last night’s rally and is currently trading at $111,100.
“It’s clear the market is seemingly positioned conservatively with room for upside if we start pricing in higher odds of interest rate reductions,” Thomas Perfumo, global economist at Kraken, told DL News earlier this week.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
