Bitcoin’s breakout above $112,000 underscores robust risk appetite and persistent institutional demand, with ETF inflows and corporate treasury allocations driving price action. The surge forced over $200 million in short liquidations, highlighting the speed and volatility of the move. Despite the rally, technicals suggest further upside is possible, with patterns projecting targets as high as $165,000 and supply on exchanges at decade lows.

Corporate adoption continues to accelerate, evidenced by over 110 public companies now holding nearly 800,000 BTC. Notable recent moves include Remixpoint’s decision to pay its CEO entirely in Bitcoin and ongoing treasury accumulation by firms in Japan, the UK, and the healthcare sector. MicroStrategy’s pause in weekly purchases and its $4.2 billion preferred stock offering signal a shift toward financing future buys, while its unrealized gains now stand at $14 billion.

Institutional flows remain strong, with U.S. spot ETFs and BlackRock adding over 12,700 BTC in a week. Meanwhile, large dormant wallets moved $8.7 billion in BTC without signs of immediate selling, though such activity warrants monitoring for potential supply shocks. Bitcoin’s new highs in inflation-hit economies like Turkey and Argentina highlight its growing use as a hedge against local currency weakness.

Policy remains a key variable. The Trump administration’s supportive rhetoric and discussion of zero capital gains tax for crypto have buoyed sentiment, but regulatory uncertainty persists after the SEC paused Grayscale’s multi-asset ETF approval. Geopolitical risk also remains in focus, as shown by Bitcoin’s brief dip below $99,000 following U.S. military action in Iran.

Traders should monitor ETF flows, corporate treasury activity, and regulatory signals for direction. While the supply-demand dynamic remains tight, volatility is likely to persist as the market digests macro headlines and the pace of institutional adoption.