Bitcoin breaks $112,000 mark for first time

Bitcoin rose above $112,000 for the first time amid a broader rally in the risk assets. The price of the cryptocurrency surged 3.1% to $112,009, pushing year-to-date gains close to 20%. 

However, chief investment officer at Kronos Research, Vincent Liu, notes that potential profit-taking and macroeconomic developments could spark a correction. Yet, the trend remains firmly upward for now. 

Founder and CIO at Hunting Hill Global Capital, Adam Guren, believes the cryptocurrency's new record high reflects strong inflows into Bitcoin-backed exchange-traded funds. He also notes increasing institutional adoption and a favorable macroeconomic backdrop. 

According to Guren, as political instability rises globally, investors are increasingly attracted to hard assets. In this regard, Bitcoin benefits from both gold-like positioning and the risk associated with its price dynamics. At the same time, the hallmark of the main cryptocurrency’s current cycle is structural, regulated, and sustainable demand, he adds.