Bitcoin first broke through 112,000 USD, with institutional demand driving a comprehensive pump in risk assets.

Analysis suggests that the demand for ETF and other TradFi tools is reshaping the Bitcoin market landscape. Unlike the past, which primarily relied on retail investors, the current pump is characterized by a structural influx of institutional funds.

Written by: Bao Yilong

Source: Wall Street Journal

Bitcoin price has first surpassed $112,000, setting a new historical high. This milestone breakthrough reflects the current market's high speculative sentiment, with institutional funds continuously flowing in, driving the entire risk asset sector to rise.

On July 9th, during the New York late trading session, Bitcoin suddenly surged, continuously breaking through the $110,000 mark and the high price level of May 22nd, reaching a maximum of $112,009, with a rise of 3.1%, bringing its cumulative increase this year close to 20%.

Analysis suggests that the demand for ETF and other traditional financial instruments is reshaping the Bitcoin market landscape. Unlike before, which mainly relied on retail investors, the current rise is characterized by a structural influx of institutional funds. Data from the cryptocurrency trading firm GSR shows that institutional investors are continuously buying Bitcoin through various financial instruments, and this demand pattern is more stable compared to historical speculative buying.

Hunting Hill Chief Investment Officer Adam Guren pointed out that Bitcoin breaking through $112,000 reflects the compounded effects of ETF capital inflows, increasing institutional adoption, and a favorable macro environment:

Unlike previous cycles, the current demand is structural, regulated, and sticky.

Short-term options show optimistic sentiment, macro environment provides support

Derivatives market data further corroborates the market's optimistic expectations.

On cryptocurrency exchanges, the call options expiring at the end of July show a high open interest at strike prices of $115,000 and $120,000.

Vincent Liu, Chief Investment Officer of the cryptocurrency trading company, stated that traders should remain vigilant regarding potential profit-taking or macroeconomic changes, which could trigger a pullback, but the current trend remains firmly bullish.

In addition, according to media reports, the current macroeconomic environment provides favorable conditions for risk assets such as Bitcoin. Rising global political instability, coupled with a renewed market expectation for interest rate cuts, is prompting investors to seek hard asset allocations.

Analysts point out that Bitcoin is benefiting from two dimensions: it has gained a safe-haven asset positioning similar to gold, and it enjoys the momentum brought by rising risk appetite. This dual attribute makes it stand out in the current market environment.

Despite the Trump administration announcing a new round of tariff measures, speculative sentiment still dominates the market. Nvidia briefly surpassed a $4 trillion market cap, and technology stocks generally rose, providing a favorable market atmosphere for risk assets including Bitcoin.