Bitcoin Hits New High: Factors Driving the Surge Today

Bitcoin’s price reached a record high of $111,880 due to factors like easing global tensions and rising institutional demand. Trading volume surged, signaling renewed investor confidence. Additionally, Texas passed a significant bill for a state-managed Bitcoin reserve. Short liquidations increased, indicating a price squeeze on bearish traders, while all tracked Bitcoin wallets are now profitable, reflecting strong long-term conviction.

In a notable turn of events, Bitcoin’s price skyrocketed to a new all-time high, hitting $111,880 on Thursday with a 4.05% increase over the day. This uplift in value aligns with a backdrop of diminishing global tensions, rising derivatives activity, and a surge in institutional interest. Ethereum also had a good day, climbing by 2.86% to reach $2,631, while the total cryptocurrency market capitalisation surged to an impressive $3.66 trillion.

A look at trading data reveals a significant increase in activity. Daily trading volume saw a considerable jump of 74.69%, reaching $219.36 billion as crypto futures open interest swelled by 18.58% to $80.11 billion. These increases indicate a flood of capital entering the market and a resurgence of investor confidence, contributing to the current bullish trend.

With Bitcoin’s price surge, market liquidations have also picked up pace. In just 24 hours, total liquidations reached $225.67 million; of which, a staggering $179.34 million stemmed from short positions. Interestingly, short liquidations alone peaked at $63.26 million in just the last 12 hours, overshadowing the mere $8.17 million in liquidations from long positions. This stark discrepancy hints at a broader price squeeze affecting over-leveraged shorts. Options activity further compounded the volatility, with options volume spiking 88.52% at $8.12 billion, while open interest in options saw a 5.38% increase.

On the sentiment front, the Fear & Greed Index is currently at 72, firmly placing market sentiment in the ‘greed’ zone. Analysts suggest that this lift is being fuelled by several simultaneous factors coalescing in the current crypto landscape.

Significantly, Texas made strides in crypto policy by passing Senate Bill 21, dubbed the Texas Strategic Bitcoin Reserve, with a 101–42 vote in the House. The bill envisions a state-managed digital asset fund, overseen by the Texas Comptroller, and is set to be limited to assets valued over $500 billion—Bitcoin is the only asset on that list, as of now. This move is seen as a major boost for crypto’s institutional credibility, enhancing investor confidence nationally.

Meanwhile, investment firms like VanEck are gearing up to launch a Real World Asset fund on Avalanche, highlighting growing institutional interest in blockchain projects and tokenized finance.

In terms of on-chain performance, analyses from the platform IntoTheBlock reveal that every monitored Bitcoin wallet is currently in profit. This is a notable first in this current cycle, with approximately 19.89 million BTC—equivalent to an unrealised market value of $2.21 trillion—showing positive returns. Such statistics illustrate robust long-term conviction among Bitcoin holders.

Prominent figures like Michael Saylor have pointed out the profitability for historical buyers, while financial media outlet Altcoin Daily echoed the sentiment that long-term holders are thriving in this market.

Furthermore, additional legislative progress has surfaced from Washington, where the GENIUS Act seems to have gained bipartisan support. If implemented, this could offer more clarity around dollar-backed crypto assets and potentially broaden interest in on-chain U.S. Treasuries.

In summary, this Bitcoin rally is buoyed by positive legislative changes, growing open interest in futures and options, and strong performance indicators from on-chain metrics. As institutional funds are readied for deployment and state investments endorse crypto laws, bullish sentiment continues to dominate the market landscape.