Bitcoin set a new record high on Friday after jumping more than 6% in just a few hours earlier in the day.

The world’s largest cryptocurrency climbed above $118,000 for the first time in its history, after trading below $80,000 as recently as April.

The broader crypto market also posted strong gains, with Ethereum (ETH), Solana (SOL), and Dogecoin (DOGE) all rising more than 7%.

This new record lifted Bitcoin’s market capitalization to over $2.3 trillion, placing it ahead of tech giants like Alphabet (Google) and Meta, and even surpassing silver — though it remains a fraction of gold’s estimated $22 trillion market cap.

The exceptional rally began after U.S. President Donald Trump declared “Liberation Day” on April 2, triggering turmoil in traditional markets and driving both institutional and retail investors toward alternative assets like Bitcoin as a hedge against large-scale economic disruption.

Gadi Chait, Head of Investment at Xapo Bank, told The Independent: “Bitcoin has shattered expectations, breaking out from a quiet trading range into a full-on surge culminating in a record high.”

He added, “What’s happening behind the scenes is a frenzied institutional accumulation. What’s remarkable is that this steady flow of institutional capital has persisted despite extreme global economic uncertainty — a stress test many so-called ‘volatile’ assets have failed.”

The latest surge has fueled bullish forecasts. A recent Finder survey of 22 experts showed a median year-end price target of $145,167.

To reach that target, Bitcoin would need to rise another $27,000 in the second half of the year, after gaining nearly $25,000 in the first.

Kadan Stadelmann, CTO of Komodo and one of the survey participants, said: “We likely still have at least six months left in this bull cycle. If history repeats, I’d expect a peak in Q1 of 2026, followed by a bear market.”

Is Bitcoin Eyeing the $120K Milestone?

Bitcoin trading volume in the past 24 hours exceeded $81 billion — the highest since January, just before Trump was sworn in for his second term, and since the cryptocurrency dropped to $84,000 in February.

Kushal Manupati, COO and Regional Growth Lead at Binance South Asia, told Decrypt: “Bitcoin nearing the $120,000 barrier and hitting a record high of $118,000 marks a pivotal moment for the digital asset industry.”

He added: “Large institutions are now entering the market in force, adding long-term liquidity and credibility to the sector.”

From a broader perspective, analysts at Singapore-based QCP Capital noted that the market has grown largely unfazed by the White House’s repeated shifts in tariff policy. Business confidence remains firm, despite the latest statements from the Trump administration.

They pointed to a positive signal emerging from industrial metals markets — particularly copper, often called “Dr. Copper” for its economic forecasting reputation: “Copper prices are rising on stronger industrial demand and improved liquidity, a healthy indicator.”

What Comes Next?

As Bitcoin enters uncharted price territory, traders are now gauging how long the euphoria might last. Bitcoin inflows to exchanges — a key measure of how much BTC is being moved for trading — have continued to decline since October, currently sitting at just 2.39 million, the lowest level in three years, according to CryptoQuant.

Ryan Li, Senior Analyst at Bitget Research, said: “Strong financial market performance, stable money supply, and the passing of the ‘Big Beautiful Bill’ are all bullish signals for Bitcoin.”

He added, “Given these conditions, Bitcoin is in an excellent position to break past its previous highs in July, with a strong chance of reaching $120,000 before the month ends.”

Oil prices rose slightly on Friday as investors balanced signs of near-term market tightness against the possibility of a significant supply surplus this year, according to the International Energy Agency (IEA). Markets also turned their focus to U.S. tariffs and potential sanctions on Russia.

Brent crude futures rose by 40 cents, or 0.58%, to $69.04 a barrel by 10:27 GMT. U.S. West Texas Intermediate (WTI) crude climbed 45 cents, or 0.68%, to $67.02 a barrel.

At these levels, Brent is set to record a weekly gain of about 1.1%, while WTI remains largely unchanged from last week’s close.

The International Energy Agency said Friday that the global oil market may be tighter than it appears, driven by surging demand from peak summer refinery operations to meet travel and electricity generation needs.

September Brent contracts are currently trading at a $1.10 premium over October contracts, indicating tightness in near-term supply.

John Evans, analyst at PVM, wrote in a note on Friday: "Civilians, whether in the air or on the roads, are demonstrating a strong desire to travel."

Short-Term Tightness vs Long-Term Surplus

Despite current tightness, the IEA raised its forecast for oil supply growth this year while trimming its demand outlook — a signal that the market could swing into surplus.

Commerzbank analysts wrote in a note: "OPEC+ will increase output rapidly and aggressively. There is a risk of a significant oversupply. Still, oil prices are receiving short-term support."

One sign of near-term demand strength: Saudi Arabia is preparing to ship around 51 million barrels of crude to China in August — the largest shipment of its kind in over two years.

However, looking further ahead, OPEC has lowered its forecast for global oil demand between 2026 and 2029, citing slower growth in China, according to its annual "World Oil Outlook 2025" report released Thursday.

Tariffs and Sanctions Add to Market Jitters

Both benchmark oil contracts had fallen over 2% on Thursday, as investors grew nervous about the impact of President Trump’s unpredictable tariff policies on global economic growth and oil demand.

Analysts at ING wrote in a note to clients: "Prices recovered some losses after President Trump said he plans to make a ‘major announcement’ about Russia on Monday — a statement that could stir fears of new sanctions on Moscow."

Trump has recently voiced frustration with Russian President Vladimir Putin over the lack of progress in peace efforts with Ukraine and the intensifying bombardment of Ukrainian cities.

Meanwhile, in Brussels, the European Commission is preparing to propose a flexible price cap on Russian oil this week as part of a new sanctions package.

The U.S. dollar rose on Friday, supported by escalating global trade tensions after President Donald Trump announced new tariffs on imports, including a 35% levy on neighboring Canada, along with plans to impose broad tariffs of 15% or 20% on most of the United States’ trading partners.

The latest trade blow to Canada came as a surprise to investors, who had expected Ottawa to reach a new economic and security agreement with Washington.

The Canadian dollar fell 0.22% to 1.369 CAD per U.S. dollar, after an initial drop of over 0.5% immediately following Trump's tariff announcement, which is expected to take effect on August 1.

The euro also declined 0.1% to 1.1688 dollars, heading for a weekly loss of 0.9%, after Trump said the European Union may receive a letter specifying the new tariff rates by Friday, raising doubts over the progress of trade talks between Brussels and Washington.

Piotr Matys, senior FX strategist at InTouch Capital Markets, said: "Officials in many countries who have been negotiating in good faith with the Trump administration may now wonder whether the president will raise the bar — as he did with Canada — in the final moments of the talks."

Although market reaction to this latest wave of tariffs was limited compared to the heavy selling seen in April on “Liberation Day,” concerns still linger among investors regarding the future of global trade and whether the August 1 deadline is truly final.

These concerns worked in favor of the U.S. dollar, which rose 0.2% against a basket of currencies to reach 97.79, on track to record its biggest weekly gain since February, with a 0.8% increase.

The dollar was also supported by:

- Data showing the resilience of the U.S. labor market.

- The minutes of the latest Federal Reserve policy meeting, which tempered market expectations for an imminent interest rate cut.

Matys added: "Most investors see this recent dollar rally as a short-term corrective rebound, not a lasting reversal. President Trump’s policies have undermined the dollar’s status as the world’s premier reserve currency."

Despite the current rally, the dollar index remains down 9% since the start of the year, amid concerns that upcoming data could reflect the negative effects of Trump’s policies on the world’s largest economy.

Tariff Impact on Other Currencies

The Japanese yen fell 0.41% to 146.91 per dollar, heading for a weekly loss of about 1.5%, after Trump imposed a 25% tariff on Japan earlier this week.

The Brazilian real, which traded at 5.532 per dollar, is on track for a 2% weekly loss — its biggest drop in about five months — after Trump surprised Brazil by adding it to the tariff list.

President Luiz Inácio Lula da Silva said he is seeking a diplomatic solution to the tariff crisis but pledged a reciprocal response if the tariffs are enacted on August 1.

The British pound dropped 0.31% to 1.3538 dollars, approaching its lowest level in two weeks, after the U.K. economy unexpectedly contracted for a second consecutive month in May.

Bitcoin Hits New Record Above $118,000

In contrast, cryptocurrencies posted strong gains, driven by increasing institutional demand and supportive U.S. policies toward digital assets.

Bitcoin rose 3.7% to a new all-time high of $118,407.96.

Ethereum jumped 5.7% to $2,980.15.

Zhang Wei Liang, currency and credit strategist at DBS Bank, said: "This new record reflects the resilience of global risk appetite despite Trump’s tariffs, and also shows strong optimism regarding the crypto legislation expected to be discussed during what is being called ‘Crypto Week’ in Congress."