Bitcoin breaks through $112,000 historical high as institutional funds and liquidity drive the bull run.

Bitcoin Breaks New High of $112,000: Liquidity Easing and Institutional Investment Drive

The price of Bitcoin reached a historic high of $112,000 this morning. This surge is driven by multiple factors, including the continued weakness of the dollar, ample global liquidity, and accelerated institutional funding. This article will review the market dynamics since June, analyze the impact of geopolitical conflicts and economic data on risk assets, and explore Bitcoin's unique performance in this rebound and its future direction.

June Market Review

In June 2025, the market was shrouded in trade uncertainty, geopolitical conflicts, and complex economic data. However, despite the grim macro backdrop, risk assets rebounded broadly. The US stock market closed higher across the board, with both the Nasdaq 100 Index and the S&P 500 Index reaching all-time highs. Bitcoin briefly fell below $100,000 in the middle of the month but then rebounded strongly, ending the month up 2.84%. In contrast, the overall crypto market fell by 2.03%, with Ethereum experiencing heightened volatility and underperforming other mainstream assets, recording a decline of 2.41%.

At the beginning of the month, the overall market was leaning positively, and investors were relatively optimistic about digesting macro data and geopolitical situations. The tension between the U.S. and China in trade initially heated up again, but eased after a call between the leaders of the two countries. China's manufacturing PMI fell to the lowest point since 2022, and the OECD lowered its global growth expectations once again. In the U.S., economic data was mixed: non-farm payroll data exceeded expectations, the unemployment rate remained stable, the number of initial unemployment claims unexpectedly decreased, while retail sales showed a decline. The CPI for June fell below expectations again, reinforcing the view of cooling inflation. The Federal Reserve kept interest rates unchanged for the fourth consecutive time at the June FOMC meeting, stating that it would wait for more clear signals regarding inflation and the labor market.

The crypto market experienced several short-term shocks in June, including the public conflict between Trump and Musk over tax policies, as well as a brief escalation of geopolitical tensions. After the market came under pressure in the second-to-last week of June, Bitcoin rebounded alongside an improvement in market sentiment and increased institutional participation. The total net inflow for Bitcoin ETFs in June exceeded $4 billion. Ethereum, on the other hand, faced higher volatility and deeper corrections, with specific triggers still unclear. At the same time, crypto treasury strategies have garnered attention, with multiple companies beginning to expand their holdings to non-Bitcoin assets such as ETH, SOL, BNB, and HYPE, demonstrating the market's strong recognition of this strategy.

Geopolitics became the main focus in late June. On June 13, war broke out between Israel and Iran. Although the Israeli military launched airstrikes on Iranian nuclear facilities, triggering a missile retaliation from Iran, the market initially remained stable. On June 21, after the U.S. airstrikes on three Iranian nuclear facilities, cryptocurrency prices plummeted, while U.S. stocks remained stable. On June 24, Trump announced a ceasefire agreement mediated by Qatar, alleviating short-term market panic. Despite sporadic missile attacks still occurring, the crypto market gradually recovered after the ceasefire, while traditional safe-haven assets like gold and crude oil retreated, reflecting a decrease in market concerns over a prolonged conflict.

Bitcoin 112,000 dollars new high behind: dual push from weak dollar and institutional entry

Diversified Allocation After BTC

An unexpected trend in 2025 is the rapid adoption of crypto treasury strategies by enterprises, especially in June, when this trend accelerated significantly, with the number of related companies nearly doubling. Measured by trading volume, the scale of Bitcoin purchases by crypto treasury companies in June surpassed the total net inflow of the U.S. spot Bitcoin ETF, which was $4 billion in that month, (.

Despite Bitcoin and Ethereum still dominating the market, an increasing number of enterprises are beginning to allocate a wider range of crypto assets, such as SOL, BNB, TRX, and HYPE, indicating a growing trend of diversification beyond mainstream coins. Among the 53 confirmed crypto treasury companies, 36 focus on BTC, 5 allocate SOL, 3 allocate XRP, 2 allocate ETH, BNB, and HYPE respectively, and 1 allocates TRX, FET, along with a diversified altcoin investment portfolio.

The continuation of this trend is strongly anticipated, as companies continue to drive this strategy, while the market also demonstrates a strong willingness to provide ample funding and support for multi-asset allocation.

However, the market has begun to doubt this strategy, especially as some companies use debt financing to allocate crypto assets, raising concerns about potential leverage risks. Currently, zero-interest or low-interest convertible bonds are commonly used. If these bonds are "in the money" at maturity, investors can choose to convert them into company equity. However, if they are "out of the money" at maturity, the company must repay the principal and interest in cash, raising concerns about liquidity and solvency. Some companies even lack sufficient cash to pay interest.

In this case, companies usually have four response options:

  1. Selling cryptocurrency assets to raise funds may exert downward pressure on market prices, affecting other treasury companies holding the same assets.
  2. Issuing new debt to repay old debt is equivalent to refinancing;
  3. Issuing new shares for financing, used to repay debts or acquire additional assets, this method has relatively no default risk;
  4. If the asset value is insufficient to repay the debt, a default may occur.

The path the company ultimately takes will depend on the market conditions at the time of maturity. Generally speaking, the company may only resolve issues through refinancing if the market permits.

In contrast, the method of acquiring crypto assets through the issuance of stocks carries less risk, as it does not involve debt and does not constitute a mandatory repayment obligation, making it easier for the market to accept within the overall risk structure.

According to a report released on June 4, current market concerns about the leverage structure may be exaggerated. Most of the debt issued by Bitcoin treasury companies will mature between June 2027 and September 2028. Although the crypto industry has a history of systemic risks caused by high leverage, this type of debt structure does not currently pose an imminent threat. However, it is worth noting that if more companies adopt this strategy in the future and issue shorter-term debt, the potential risks will gradually accumulate.

![Bitcoin 112,000 USD New High Behind: Dual Drivers of Weak Dollar and Institutional Influx])https://img-cdn.gateio.im/webp-social/moments-743a16543704ac1a1b43616cb09f681c.webp(

Circle Listing and the GENIUS Act Catalyzing Industry Turning Point

June 2025 will be a key turning point in the stablecoin industry, primarily driven by two major events: a certain company successfully going public and the U.S. Senate passing the GENIUS Act, which is the first comprehensive stablecoin legislation in U.S. history.

As the world's second-largest stablecoin issuer, the company became the first native stablecoin company to go public in the United States, with its stock price soaring more than six times in June. Despite such a significant increase suggesting that the IPO pricing may have been low, more importantly, investors' recognition of the future infrastructure role of stablecoins has significantly strengthened.

On June 25, the GENIUS Act was passed in the Senate with a vote of 68 to 30, marking a breakthrough after months of procedural voting and political maneuvering. This includes the critical procedural vote failure on May 8 due to last-minute disagreements. The bill has now been handed over to the House of Representatives, where some members have suggested incorporating it into the broader CLARITY Act. However, the prospects for merger remain unclear, especially in light of Trump's public opposition.

With regulatory push, companies' interest in stablecoins continues to rise. American retail giants are considering issuing their own stablecoins; a certain card company is further expanding ecosystem support by integrating stablecoin products from several companies. These companies are not only competing to issue stablecoins but also hope to take the lead in circulation scale and actual use. The industry's focus has shifted from "can we issue" to "can we implement", and the success of stablecoins will depend on their penetration in real payment scenarios and user coverage.

On the international front, this trend is also gradually spreading. For example, a certain company has obtained regulatory approval for its stablecoin in Dubai, and the Bank of Korea is also exploring the issuance of a stablecoin pegged to the Korean won. However, the United States is currently the most advanced in this development.

Stablecoins are just the starting point. They signify the first phase of bringing traditional fiat currency into the blockchain, achieving the deployment of 24/7, fast interoperable infrastructure. The focus of the next phase will be the introduction of on-chain financial assets, starting with the tokenization of stocks.

A certain platform has recently launched tokenized trading of 200 listed stocks for users in Europe, becoming a pilot platform to test user demand and execution quality. Another platform is also seeking corresponding regulatory approval in the United States to promote similar products. These early attempts pave the way for more traditional financial products to go on-chain, with the next steps expected to cover asset classes such as private credit and structured funds.

![Bitcoin 112,000 USD new high behind: Weak dollar and institutional entry drive dual momentum])https://img-cdn.gateio.im/webp-social/moments-ab58d4c77d6703292b349377f7d69d50.webp(

Limited Impact of Geopolitical Conflicts on the Market

The Israel-Iran war that broke out on June 13, 2025 lasted for 12 days. Although it attracted global public attention, the long-term impact on risk assets was limited. In the early stages of the conflict, the cryptocurrency market and the stock market responded mildly; however, after the U.S. government launched "Midnight Hammer" on June 22, conducting airstrikes on Iranian nuclear facilities, cryptocurrency prices experienced a significant drop. Following Trump's announcement of a ceasefire agreement reached with Qatar on June 24, prices quickly rebounded. Although sporadic missile attacks continued until the end of the month and the war had not officially ended, the market as a whole had returned to stability.

During this period, the Bitcoin trend rose in sync with the US stock market, showing no safe-haven attributes. Compared to April and May, when Bitcoin was seen as a store of value due to trade tariffs and global bond market tensions, this time it leans more towards risk asset logic. Bitcoin outperformed gold and the overall cryptocurrency market, partly attributed to strong institutional support, including monthly ETF inflows reaching $4 billion, continuous purchases by treasury companies, and signs of sovereign buying, indicating that the impact of geopolitical shocks on Bitcoin is relatively short-lived.

This conflict has also sparked renewed attention in the market towards Iran's local cryptocurrency infrastructure, particularly in the Bitcoin mining industry. According to estimates from 2021, approximately 4.5% of the world's Bitcoin mining occurs in Iran, primarily relying on low-priced government-subsidized electricity settled in rials. During Bitcoin's bullish cycles, this structure yields considerable profits.

After the airstrikes by the U.S., there are rumors that some mining sites in Iran have been damaged, leading to a decline in network hash rate. However, short-term fluctuations in hash rate are often more likely caused by block time differences or data noise, and there is currently no clear evidence to suggest that this conflict has caused systemic damage to mining facilities. Another possible explanation is that the heatwave weather in the Eastern U.S. and the Midwest has forced miners to temporarily reduce output.

In addition to infrastructure, this conflict has also sparked discussions about the role of cryptocurrency in Iran's financial system. For a long time, Iran's high inflation, international sanctions, and unstable exchange rate against the dollar have prompted widespread adoption of cryptocurrency in the private and gray economies.

Past data shows that during the assassination of the Hezbollah leader in 2024 and multiple missile exchanges, there was a significant increase in the outflow of Iranian crypto assets.

Bitcoin and TRON have traditionally been the main blockchain networks used in Iran, especially for USDT stablecoin transfers. However, in this round of conflict, the on-chain stablecoin trading and settlement volumes did not show a significant increase, indicating that the overall cryptocurrency usage patterns have not changed due to the conflict, and the on-chain activity of short-term holders has actually decreased.

Although there were no significant anomalies in the on-chain data, the cryptocurrency industry emerged symbolically during this conflict: Iran's largest cryptocurrency exchange suffered a $90 million hacker attack during the hostilities, with the attackers being an organization that supports Israel, leaving anti-Islamic Revolutionary Guard Corps messages through wallet addresses. The exchange has previously been associated with the flow of funds from entities linked to the IRGC, and this attack appears more like a form of cyber psychological warfare rather than a profit-driven attack.

Iran is

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PaperHandsCriminalvip
· 08-07 08:29
Here I am again, selling at the lowest point... This time I missed 110,000.
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BlockDetectivevip
· 08-06 19:49
I am an old sucker in the crypto world.
View OriginalReply0
DataBartendervip
· 08-06 07:11
The fluctuation is quite large, I don't dare to enter a position.
View OriginalReply0
TrustlessMaximalistvip
· 08-06 07:05
Retail investors are catching a falling knife again.
View OriginalReply0
NftDataDetectivevip
· 08-06 06:57
smth feels off about this pump... volume patterns don't match retail sentiment tbh
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