Bitcoin Hits New Record High. Tariffs Unaffected by Cryptocurrency

The topic of Trump's tariffs is resurfacing on global markets, but unlike in April, cryptocurrencies are now seeking new highs rather than bottoms. Bitcoin reached a record high on Wednesday.

Over the past two weeks, Bitcoin has been trading sideways, never breaking out of a fairly narrow range – since June 24, the cryptocurrency's price has neither fallen below $105,900 nor exceeded $110,000. However, that all changed in the last 24 hours, when the former cryptocurrency attacked the upper level and broke through it, reaching $111,998 on Wednesday evening – a new record for Bitcoin.

Looking at the performance of Bitcoin and other cryptocurrencies at the beginning of the third quarter of 2025, it's worth noting their high resilience to the uncertainty surrounding Donald Trump's tariffs. BTC's new record high was unaffected by last week's tariffs against 14 countries, which are scheduled to take effect on August 1st, or the recent announcement of copper tariffs.

Recall that Donald Trump's "Liberation Day" in April led to a sharp sell-off in risky assets and pushed Bitcoin's price to a local low below $75,000. It took the most important cryptocurrency a month and a half to recover, before reaching a peak of $111,544 on May 22nd – a record that has just been broken.

Altcoin valuations are also gaining, with some surpassing Bitcoin's gains over the past week. Ethereum has gained over 8% over the past week, surpassing $2,800. Ethereum is less than 3% away from reaching its highest price level in six months.

On Tuesday, just a day before Bitcoin's new record high, analysts at the cryptocurrency exchange Bitfinex wrote in their market report: "Bitcoin's short-term momentum is weakening at its highest levels. This signals a lack of buying power and suggests that bulls are hesitant or unable to significantly raise prices without new catalysts or clearer macro signals."

So where does the recent rally stem from? The observations of Bitfinex analysts are fundamentally flawed. Retail investor activity in the Bitcoin network fell in June to its lowest level since October 2023, signaling that the "street" is currently largely out of the market, monitoring the situation. Cumulative BTC transaction volume fell 15% in June compared to May.

On the other hand, we continue to see a steady influx of capital from institutions. More public companies are adding Bitcoin to their reserves, following in the footsteps of Strategy, a publicly traded company that has accumulated nearly 600,000 BTC. Bitcoin ETFs are also consistently buying the first cryptocurrency from the market. BlackRock's iShares Bitcoin Trust (IBIT) has already accumulated over 700,000 BTC, and the fund's value currently exceeds $76 billion.

Anthony Pompliano, founder and CEO of Professional Capital Management, wrote in a note to investors on Wednesday: "Bitcoin is the only asset I know of that becomes less risky as its market cap increases," referring to the cryptocurrency's low volatility observed in recent weeks. According to an analysis by "The Block," in June it was at levels not seen in nearly two years.

Does Bitcoin have a chance of maintaining its all-time highs or setting new ones by the end of the quarter? Much will depend on macroeconomic conditions and the actions of the Federal Reserve. Despite the lack of reaction to the recent round of reports about Trump's tariffs, investors should also exercise caution in August, when the deadline for imposing tariffs on US trading partners is expected to pass.

"The surge in inflows into bitcoin ETFs since late April 2025 has been driven primarily by political pressure on the Federal Reserve, with Donald Trump openly demanding that Chairman Jerome Powell cut interest rates to 1% and resign. What began as pressure from his supporters expanded as Federal Housing Finance Agency Director Bill Pulte and Senator Cynthia Lummis also called for Powell's resignation, criticizing his hawkish stance," Markus Thielen, founder of 10x Research, wrote in a note to clients on Thursday.

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