Bitcoin first broke through $112,000, with institutional demand driving a broad rise in risk assets

The price of Bitcoin has first broken through $112,000, setting a new historical high. This milestone reflects the current market's heightened speculative sentiment, with institutional funds continuously flowing in, driving a comprehensive rise across the entire risk asset sector. On July 9th, during the New York closing session, Bitcoin suddenly surged, breaking through the $110,000 mark and the high point of May 22, reaching a peak of $112,009, with an increase of 3.1%, bringing its cumulative increase this year close to 20%. Analysts believe that the demand for traditional financial instruments such as ETFs is reshaping the Bitcoin market landscape. Unlike previous cycles that primarily relied on retail investors, the current round of increases is characterized by structural inflows of institutional funds. Data from 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. Adam Guren, Chief Investment Officer of Hunting Hill, pointed out that Bitcoin's breakthrough of $112,000 reflects the compound effect of ETF fund inflows, increased 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 confirms the market's optimistic expectations. On cryptocurrency exchanges, call options expiring at the end of July show high open interest at strike prices of $115,000 and $120,000. Vincent Liu, Chief Investment Officer of a cryptocurrency trading firm, stated that traders should remain vigilant about potential profit-taking or macroeconomic changes, as these factors could trigger a pullback, but the current trend remains decisively bullish. Additionally, according to media reports, the current macroeconomic environment provides favorable conditions for risk assets such as Bitcoin. The 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 is gaining a safe-haven asset positioning similar to gold while also enjoying 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 continues to dominate the market, with Nvidia briefly surpassing a $4 trillion market value and technology stocks generally rising, providing a favorable market atmosphere for risk assets, including Bitcoin