Bitcoin has recently surged past the $116,000 mark and is currently trading around $117,000—marking one of its highest levels this year, with a gain of over 20% since January.
The price rally is largely driven by increased interest from institutional investors, such as large financial firms. A more favorable political stance toward cryptocurrencies in the U.S. has also strengthened market sentiment. Notably, Donald Trump’s public support for cryptocurrencies and promises of looser regulation have boosted investor confidence.
Additionally, a reduction in the circulating supply of Bitcoin—due to some holders withdrawing their coins from the market—has added upward pressure on the price.
Such sharp price increases often lead to forced liquidation of short positions (bets on falling prices). It is reported that this rally triggered approximately $560 million worth of short liquidations.
While Bitcoin remains around $117,000, the market is still highly volatile, and analysts warn that further drastic price swings are possible. Nonetheless, current trends suggest that investor interest and confidence in cryptocurrencies are gradually recovering, and Bitcoin is reinforcing its position as a market leader.
