Bitcoin Hits All-Time High Of $109,500: What's Next?
Bitcoin (CRYPTO: BTC) soared to a new all-time high on Wednesday, crossing $109,000 amid rising investor confidence and renewed momentum in the digital asset market.
What Happened: Bitcoin’s new high of $109,500 on Coinbase (NASDAQ:COIN), surpasses the previous record set in January, underlining Bitcoin's resilience and growing role in macro portfolios.
The world's largest cryptocurrency has staged a sharp recovery from its April 8 low of $76,320, a day that coincided with a broader downturn in equities driven by fears of a renewed U.S. trade conflict.
Since then, Bitcoin has rebounded over 40%, bolstered by both technical momentum and a favorable macroeconomic environment.
More than $50 million in short positions were liquidated within a single hour as the rally gathered steam, signaling a wave of forced buying and renewed bullish sentiment.
The surge in price is accompanied by fundamental strength: over 33,000 BTC were added to short-term holder supply in just the past week, while long-term holders have quietly accumulated nearly half a million BTC since March.
What experts Are Saying: Bitcoin's rise comes at a time when digital assets are increasingly diverging from traditional risk markets.
"This isn’t just noise—it's conviction," Iliya Kalchev, analyst at Nexo Dispatch told Benzinga. "We're seeing a reshuffling of the supply landscape that supports durable upside rather than a speculative spike."
As global investors reassess their exposure to U.S. equities amid trade tensions and inflation uncertainty, assets like Bitcoin have drawn inflows as potential hedges and alternative stores of value.
Standard Chartered had previously forecast a fresh high in Q2, citing increased asset reallocation among institutional players.
While altcoins like Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA), and Dogecoin (CRYPTO: DOGE) also posted modest gains of 1–3%, the spotlight remained firmly on Bitcoin.
Meanwhile, the U.S. Securities and Exchange Commission has postponed decisions on several new exchange-traded fund proposals tied to major altcoins, including XRP (CRYPTO: XRP), DOGE and SOL, delaying the potential next wave of ETF-driven market expansion.
Gadi Chait, Investment Manager at Xapo Bank, emphasized that Bitcoin's current momentum is underpinned by spot market participation.
"Funding rates on Binance remained negative through early May, and neutral funding yields have compressed sharply," he told Benzinga. "That indicates fresh capital entering without overleveraged froth."
Chait also pointed to a rare convergence of supportive macro and policy factors. "We've got a temporary cooling of U.S.–China tariff escalation, softer inflation prints, and the first real bipartisan tailwind in Washington with the FIT21 bill.
At the same time, the UK's regulatory framework is nearing final form. All of this creates room for allocators to reenter the market."
What’s Next: Institutional participation is no longer marginal.
BlackRock's spot Bitcoin ETF IBIT (NASDAQ:IBIT), recently exceeded $62 billion in assets under management, reinforcing Bitcoin's evolving status as a mainstream investment instrument.
Traders are closely watching the $108,000 support level for confirmation of continued bullish momentum.
A decisive break higher could propel Bitcoin toward $110,000 in the coming days.
Macro watchers are also awaiting speeches from Federal Reserve officials and key U.S. economic data later this week for clues on future monetary policy.
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