Bitcoin reached a new all-time high on Thursday, driven by growing demand from institutional investors and supportive policies adopted by the U.S. administration under President Donald Trump toward digital currencies.

The world’s largest cryptocurrency surged to a record level of $112,743.49, and was recently trading 1.7% higher at $112,621.63.

Anthony Pompliano, founder and CEO of Professional Capital Management, told investors in a Wednesday note: “Bitcoin is the only asset that becomes less risky the larger it gets.” He added: “In the past, most large asset managers couldn't gain exposure to Bitcoin when its market cap was between $100 and $200 billion. But now, with its value in the trillions, virtually every major asset manager in the world can allocate to it.”

Trump's Policies Support the Crypto Sector

Supportive policies from the Trump administration have boosted investor confidence and unlocked fresh capital flows into the crypto space.

For instance, Trump Media & Technology Group (DJT.O), operated by the Trump family, is seeking approval to launch a new ETF that would invest in a range of cryptocurrencies, including Bitcoin, Ethereum, Solana, and Ripple, according to a filing submitted this week to the U.S. Securities and Exchange Commission.

Rally Extends to Other Cryptos and Crypto Stocks

The surge in Bitcoin extended to other digital assets as well:

Ethereum, the second-largest cryptocurrency by market cap, climbed to a one-month high of $2,794.95 and was last up 5.4% at $2,740.99.

The rally also lifted shares of crypto-linked companies:

MicroStrategy Inc. (MSTR.O), co-founded by Bitcoin advocate Michael Saylor, rose 4.7% to $415.41.

Coinbase Global (COIN.O) gained 5.4% to reach $373.85.

Public Companies Add Bitcoin to Their Treasuries

While some investors have started taking profits, several publicly listed firms — including Trump Media and GameStop — recently announced plans to purchase Bitcoin and add it to their corporate reserves.

One analyst told MarketWatch: “It’s turning into a race to see who can accumulate the most purchasing power.”

Economic and Trade Risks May Shape the Rally’s Future

Sid Powell, CEO and co-founder of Maple Asset Management, believes the continuation of the rally will largely depend on macroeconomic conditions and progress in trade negotiations.

He stated: “If trade talks stumble as we near the August 1 deadline set by President Trump, Bitcoin could face additional pressure.” However, if progress is made on trade deals and inflation data comes in soft — prompting the Federal Reserve to resume rate cuts — that could further support Bitcoin’s climb.

Powell also noted that Wednesday’s Bitcoin jump was driven by a “risk-on” sentiment, after minutes from the Federal Reserve showed most policymakers anticipate rate cuts later this year.

Copper prices rose on Thursday despite a stronger U.S. dollar, as markets digested the implications of President Donald Trump’s newly announced tariffs on copper imports.

Trump’s announcement of a 50% tariff on copper imports drove domestic prices to record highs. However, analysts expect prices to gradually decline over the coming months as traders offload large stockpiles accumulated in anticipation of the measure.

The tariff follows a U.S. Commerce Department investigation launched in February, which had initially anticipated duties around 25%. The mere expectation of tariffs had already driven copper prices on the COMEX up by 25% between January and Monday.

Trump’s announcement on Tuesday sent COMEX copper prices to a record $5.6820 per pound, or $12,526 per metric ton—more than $2,920 above the benchmark price on the London Metal Exchange (LME), currently around $9,600 per ton.

Expected Price Decline as U.S. Demand Weakens

According to Panmure Liberum analyst Tom Price, “Once the Trump tariff noise settles, we expect U.S. copper prices to fall closer to global levels as domestic consumption is delayed.”

Price expects U.S. copper demand to drop 16% this year to 1.32 million tons due to tariff-related uncertainty and broader economic slowdown. U.S. manufacturing data—key to copper consumption—suggest the sector is in contraction.

Massive U.S. Inventory Surplus

Analysis by Macquarie, using trade data from January to May and shipping figures for June, estimates U.S. copper imports at 881,000 metric tons in H1 2025, compared to actual demand of only 441,000 tons.

This implies a surplus of 440,000 tons—107,000 tons stored visibly on COMEX and 333,000 tons in undisclosed or industrial supply chain stockpiles.

U.S. Inventories Soar While LME Stocks Fall

COMEX copper inventories reached 201,203 metric tons as of July 7, more than doubling since late March. In contrast, LME copper stocks fell 66% since mid-February, hitting just 90,000 tons in late June—their lowest since August 2023.

Some of the surplus is held in U.S. foreign trade zones, allowing easier re-export since it hasn’t cleared customs. COMEX inventories that have cleared customs would be harder to export but not impossible.

Duncan Hobbs of Concord Resources noted: “There’s nothing to prevent re-export of customs-cleared copper... but it would need a financial incentive like a fall in the COMEX premium.”

Tariff Exemptions May Narrow COMEX Premium

The possibility of exemptions could also weigh on U.S. copper prices. Industry sources suggest countries like Chile may be excluded from the tariff.

Chile accounted for 70% of U.S. copper imports in 2023—about 646,000 tons—and the U.S. runs a trade surplus with the country, politically easing a potential exemption.

Citi analysts, including Tom Mulqueen, expect Canada, Chile, and Mexico may ultimately face reduced tariffs around 25%, being considered “key partners.”

Traders Face Hurdles Unloading High-Cost Copper

Traders who rushed to stockpile copper now hold some of the priciest inventory globally, which may be difficult to sell unless the U.S. market maintains its high premium.

Meanwhile, at 16:23 GMT, the U.S. dollar index was up 0.2% at 97.7, with a high of 97.9 and low of 97.2.

Copper futures for September delivery rose 2.3% to $5.61 per pound by 16:16 GMT.

Bitcoin prices climbed on Thursday but remained below the all-time high briefly reached the day before, as profit-taking and renewed concerns over US tariffs dampened market enthusiasm.

The world’s largest cryptocurrency rose 2.1% to $110,961.70 as of 01:48 a.m. ET (05:48 GMT).

On Wednesday, Bitcoin briefly surged to a historic peak of $111,988.20, before paring gains as investors took profits near record levels.

Institutional Demand Pushes Bitcoin to New Highs

Bitcoin’s latest rally has been fueled by increasing institutional allocations, including treasury purchases and inflows into spot Bitcoin ETFs managed by major investment firms.

MicroStrategy (NASDAQ:MSTR) remains the largest corporate holder of Bitcoin, but new players have entered the space. GameStop Corp (NYSE:GME) announced this week that it had made Bitcoin purchases with board approval.

Earlier this week, Trump Media (NASDAQ:DJT) filed a request with the US Securities and Exchange Commission (SEC) for a new ETF named “Crypto Blue Chip,” adding to two previous ETF filings submitted earlier in July.

These structural tailwinds—including ETF inflows, corporate treasury adoption, and supportive US policy narratives—have strengthened Bitcoin’s position as an institutional-grade asset.

Trump’s Tariff Threats Cap Bitcoin Momentum

While Bitcoin had remained range-bound in recent sessions, it broke higher on Wednesday. However, concerns over potential US tariff hikes ahead of the August 1 deadline caused prices to pull back again.

Looking ahead, investors are turning their attention to “Crypto Week,” which begins July 14. US lawmakers are expected to advance at least three major bills aimed at regulating digital assets.

Bitcoin ETF Inflows Continue

Momentum in Bitcoin (BTC-USD) remains driven by growing institutional interest. Spot Bitcoin ETFs are nearing $150 billion in total assets under management.

BlackRock now holds over 700,000 Bitcoin.

MicroStrategy is approaching 600,000 Bitcoin.

Japan’s Metaplanet, which has adopted a Bitcoin-focused treasury strategy, has seen strong returns on the Tokyo Stock Exchange.

Technical Indicators Remain Bullish, Eyes on $130K

Technical outlook for Bitcoin remains bullish, with analysts eyeing a potential breakout above $130,000, supported by strong price patterns and long-term momentum.

Veteran trader Peter Brandt noted that Bitcoin is in a critical phase of its bull cycle, projecting a peak between $130,000 and $150,000 by the end of 2024.

He added that Bitcoin's cycles often align with “halving” events, where mining rewards are reduced, limiting supply and driving further price appreciation.

Oil prices slipped modestly on Thursday as investors assessed the potential impact of newly proposed US tariffs on global economic growth and demand for energy.

During early trading, Brent crude futures fell by 23 cents, or 0.3%, to $69.96 a barrel as of 09:04 GMT. Meanwhile, US West Texas Intermediate (WTI) crude dropped by 32 cents, or 0.5%, to $68.06 per barrel.

Trump Threatens Brazil with Punitive Tariffs

President Donald Trump has threatened Brazil—the largest economy in Latin America—with a 50% punitive tariff on its exports to the US, following a public rift with Brazilian President Luiz Inácio Lula da Silva.

Trump also announced plans to impose new tariffs on copper, semiconductors, and pharmaceuticals. His administration sent new tariff letters to countries including the Philippines and Iraq, adding to more than a dozen letters sent earlier this week to major US commodity suppliers such as South Korea and Japan.

Markets Cautious Despite Trade Escalation

Harry Tchilinguirian, head of research at Onyx Capital Group, commented that “markets are largely in a wait-and-see mode, given the unpredictable nature of political decision-making and the administration’s flexibility on tariffs.”

He noted that Trump’s previous track record of backtracking on tariff decisions has made markets less reactive to these announcements.

Fed Still Worried About Inflation

Federal Reserve officials remain concerned about inflationary pressures stemming from tariffs. Minutes from the central bank’s June 17–18 meeting showed that only “a few” members believed a rate cut could be appropriate soon, possibly starting this month.

Higher interest rates typically raise borrowing costs and can reduce oil demand.

Weaker Dollar Supports Prices

Offering some price support, the US dollar weakened during Asian trading Thursday. Kelvin Wong, senior analyst at OANDA, explained: “Since oil is priced in dollars, a weaker greenback makes it cheaper for holders of other currencies, boosting demand and prices.”

US Fuel Demand Shows Signs of Recovery

US Energy Information Administration (EIA) data released Wednesday showed a rise in crude stockpiles but declines in gasoline and distillate inventories over the past week.

Notably, gasoline demand rose by 6% to 9.2 million barrels per day last week, signaling a recovery in domestic fuel consumption.

Air Travel and Global Trade Continue Expanding

A client note from JPMorgan stated that global daily flight activity reached 107,600 flights during the first eight days of July—a record high. Chinese flight volumes hit a five-month peak, and port and shipping activity showed signs of continued global trade expansion compared to last year.

The note added, “Since the beginning of the year, average global oil demand growth is at 0.97 million barrels per day, in line with our forecast of 1 million bpd.”

Doubts Over Actual OPEC+ Output Increase

On the supply side, IG analyst Tony Sycamore noted skepticism over whether OPEC+’s latest quota increases will result in real production growth.

“Some members are already exceeding their official quotas, while others like Russia are unable to meet their targets due to damaged oil infrastructure,” he said.

OPEC+ is preparing to approve another significant production increase for September, which would complete the phase-out of voluntary cuts by eight members and implement a quota increase for the UAE.