Bitcoin hits record high near $112,000

Bitcoin has surged to an all-time high near $112,000, reaching a peak of $111,988.90 before stabilizing around $111,259, marking an increase of over 18% since the start of the year. This rally has been fueled by heightened investor interest and strong institutional demand, as traditional financial players increasingly embrace cryptocurrency.

The surge in Bitcoin's price has also positively impacted other cryptocurrencies. Ether, the second-largest digital currency by market capitalization, hit a one-month high of $2,794.95, trading up 5.4% at $2,740.99. The overall market sentiment has been bolstered by several factors, including significant institutional adoption from major financial firms like BlackRock, which have expanded their Bitcoin holdings, signaling confidence in its long-term value.

Additionally, recent minutes from the Federal Reserve's meetings suggest potential interest rate cuts later this year, further enhancing investor sentiment towards risk assets like Bitcoin. The price rally has also led to the liquidation of approximately $340 million in short positions, contributing to the upward momentum.

While the current trend appears bullish, analysts caution that macroeconomic factors, such as upcoming inflation data and global trade developments, could influence Bitcoin's future trajectory. Nevertheless, the cryptocurrency's resilience and increasing mainstream adoption suggest a positive outlook for the remainder of the year.

The recent rally has also benefited crypto-related stocks, with MicroStrategy rising 4.7% and Coinbase Global jumping 5.4%.