Bitcoin surged to a new all-time high of $112,000 on Tuesday, gaining nearly 3% on the day amid renewed optimism over monetary easing.
The rally comes just hours after the Federal Reserve released its June FOMC minutes, which showed most policymakers favor at least one rate cut in 2025. A few members said a reduction could come as early as the next meeting on July 30, if inflation trends continue.
Traders interpreted the Fed’s dovish tone as a signal that liquidity conditions may improve in the second half of the year. Lower interest rates typically support demand for risk assets like Bitcoin by reducing the opportunity cost of holding them.
Bitcoin Price Chart. Source: TradingView
On-chain data shows both short- and long-term holders continue accumulating BTC. However, some analysts flagged weak spot demand as a potential concern. Despite the price breakout, there is limited evidence of sustained buying pressure on centralized exchanges.
Still, the move above $112,000 pushes Bitcoin into price discovery territory. The breakout clears a key resistance level held since its last all-time high in May 2025.
Ethereum also posted modest gains, trading near $2,800. Altcoins were mixed, with most showing low volatility.
Looking ahead, the crypto market will closely watch June CPI data due July 11, followed by the Fed’s July 30 decision. Both will be key in confirming whether the Fed will begin cutting rates this summer.
For now, Bitcoin’s new high reflects growing confidence that US monetary policy is shifting toward easing.
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