Bitcoin Hits All-Time High of $112K Before Sharp Pullback Amid ETF Frenzy and Geopolitical Tensions

Bitcoin soared to a new record high of $112,000 Thursday evening, propelled by surging demand from U.S. spot Bitcoin ETFs and a wave of institutional interest. The rally, however, was short-lived, as the cryptocurrency quickly retraced to around $109,400, reflecting broader market jitters tied to renewed geopolitical uncertainty.

The price spike marks a historic milestone for the world’s largest cryptocurrency, affirming investor confidence in Bitcoin’s long-term potential amid inflation concerns and weakening fiat currencies. Yet, the retreat reminds traders just how sensitive crypto markets remain to macroeconomic catalysts.

🚀 ETF Inflows Power the Rally

The catalyst behind Bitcoin’s latest all-time high was clear: record inflows into U.S.-listed spot Bitcoin ETFs, which saw a combined net addition of $934.8 million on Thursday alone, the highest since the ETFs were approved in January 2025.

“Institutional buyers are pouring in at a pace we haven’t seen before,” said Elena Park, head of research at DigitalStack Analytics. “This isn’t retail-driven hype. This is smart money chasing a macro hedge.”

Analysts point to BlackRock’s iShares Bitcoin Trust (IBIT) and Fidelity’s Wise Origin Bitcoin Fund (FBTC) as the top beneficiaries of the capital surge, with trading volumes rivaling those of leading S&P 500 ETFs.

📉 Pullback Triggered by Tariff Threats

While the mood in crypto markets was euphoric, a dose of real-world politics brought traders back to earth. Former President Donald Trump, a front-runner in the 2024 Republican race, announced potential tariffs on European goods and Apple products, should he win re-election.

“Markets don’t like uncertainty, and Trump’s aggressive trade stance introduced exactly that,” said economist Neil Rodgers. “Crypto is still a risk-on asset in the short term, and the tariff noise caused some to take profits.”

The announcement not only impacted equities but also introduced volatility in the crypto sector, which had been rallying in tandem with tech stocks.

📊 Metrics Still Bullish

Despite the pullback, underlying market fundamentals remain strong:

  • Open interest on Bitcoin futures markets hit a new high of $80 billion, indicating continued bullish sentiment.

  • Exchange balances continue to decline, suggesting long-term holders are not selling.

  • On-chain activity — including wallet creation and transaction volume is climbing.

“Every time we get a dip, it’s bought up faster and with more conviction,” noted analyst Marcos Li of BitLens Markets. “That’s the hallmark of a maturing bull cycle.”

🔮 What’s Next?

With Bitcoin’s halving event now in the rearview mirror and institutions embracing the asset like never before, some analysts are predicting a move toward $125K–$135K by the end of Q2, assuming macro conditions stabilize.

However, caution is still warranted. “We’re in a pivotal zone,” said crypto strategist Lila Darrow. “If geopolitical risk intensifies or regulatory action emerges, we could revisit the $100K level. But for now, the trend remains undeniably up.”

🧠 Takeaway

Bitcoin’s new record high is more than just a number — it’s a signal that crypto has officially entered a new era of institutional legitimacy. While short-term corrections are inevitable, the broader trajectory for Bitcoin in 2025 remains firmly bullish.