🚀 Bitcoin Soars Past $112,000 in Historic Short Squeeze—Tariffs Add Rocket Fuel to Rally

Bitcoin just rewrote the record books—again. The king of crypto smashed through $112,000 today in a violent short squeeze, leaving bears bloodied and bulls charging. Here’s why this isn’t just another pump.

The Short Squeeze Heard ‘Round the World

Leveraged bears got steamrolled as BTC’s surge triggered $2B+ in liquidations. Traders who bet against the rally now face margin calls sharper than a Satoshi whitepaper.

Tariffs Play Unlikely Wingman

New trade barriers on Chinese tech imports sent capital fleeing into crypto’s arms—because nothing says ‘hedge against geopolitics’ like an asset that swings 10% before breakfast.

What’s Next? Same as Always

Banks will now issue ‘urgent’ BTC research reports (6 months late), while politicians discover ‘deep concerns’ about crypto’s stability—right after their secret portfolios moon. Buckle up.

Short squeeze ignites breakout as Trump tariffs shock markets

The rally was catalyzed by a short squeeze following President Trump’s announcement of new tariffs on select foreign nations. The policy shock prompted risk-averse capital to flood into Bitcoin, triggering a rapid price breakout. Within 24 hours, over $209 million (at the time of writing) in short positions were liquidated—a 731% spike—forcing traders to buy back BTC and accelerating the surge.

This MOVE coincided with a 24.93% jump in spot market volume, topping $54.6 billion in daily turnover. The volume spike confirmed strong organic demand, not just derivatives-driven volatility.

ETFs and whale accumulation tighten Bitcoin’s supply

Institutional demand remains a strong tailwind. U.S. spot Bitcoin ETFs pulled in $667 million this week alone, led by BlackRock’s iShares Bitcoin Trust (IBIT), which now holds over 625,000 BTC. This continued inflow is reducing circulating supply, helping to sustain upward pressure on price.

On-chain data also reveals that whale wallets holding between 100 and 1,000 BTC have added nearly 50,000 coins since April, echoing accumulation trends seen before the 2024 bull rally. At the same time, 75% of all BTC has remained unmoved for over a year, further limiting immediate sell pressure.

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BlackRock’s IBIT bitcoin ETF Surpasses 700,000 BTC in Record Time

Technical breakout opens path to $113.9K

Bitcoin’s price decisively cleared key resistance at $108.5K, surpassing the 23.6% Fibonacci retracement level at $107.6K. Momentum indicators suggest more room for upside. The MACD histogram stands at +164.84, while RSI remains moderate at 56.57—well below overbought territory.

If bullish momentum persists, BTC is now targeting $113,900 as the next key extension level, marking the 127.2% Fibonacci projection.

With macro catalysts mounting and supply tightening, Bitcoin appears poised to test new highs in the coming days.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.

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