Bitcoin hits record high above $116,000 on institutional demand; Dogecoin, Hedera rally up to 12%
cryptocurrency
has now gained more than 25% year-to-date and is up 102% over the past 12 months.
Ether, the second-largest cryptocurrency, also climbed over 7% to trade near $2,965 after touching a five-month high of $2,995. Other major altcoins joined the rally, including
Dogecoin
(+10%), Cardano (+10.5%), Solana (+4.6%), XRP (+6%), and
Hedera
(+12.2%).
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'Bitcoin soared past $116,000, setting a new all-time high as bullish momentum returned following recent consolidation,' said Himanshu Maradiya, Founder and Chairman of CIFDAQ. 'Institutional demand remains a major driver, with U.S. Bitcoin ETFs surpassing $50 billion in net inflows to date. BlackRock alone holds over $65 billion in BTC.'
Investor confidence has also been supported by macroeconomic trends such as a weakening dollar, rising demand for treasuries, and growing interest in Bitcoin as a hedge against sovereign credit risk. The inclusion of Coinbase in the S&P 500 further underscores Bitcoin's increasing acceptance as a mainstream asset.
The sharp breakout also triggered a massive short squeeze, contributing to the speed of Bitcoin's ascent. 'A sharp $453 million short squeeze played a key role in accelerating Bitcoin's rally,' said Avinash Shekhar, Co-Founder & CEO of Pi42. 'Forced buying from liquidated bearish positions added fuel to the upward momentum.'
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Shekhar noted that this could be the beginning of a powerful phase in the current bull cycle. 'Momentum is accelerating across the
crypto market
, signaling that we may be entering the most decisive leg of this bull cycle.'
Also Read:
Crypto Gems: Top crypto assets to watch & buy in July 2025
Ethereum is now nearing the psychological $3,000 level, which traders see as a launchpad for its next breakout. Meanwhile, Dogecoin and other altcoins are also riding the wave of market euphoria.
'Bitcoin is roaring!' said the CoinDCX Research Team. 'With over $165 billion added to the crypto market cap and $415 million in short positions liquidated, bulls have taken firm control. Long-term holders now control over 74% of Bitcoin's supply—at a 15-year high.'
The rally also reflects broader institutional and political support for digital assets. In March, President Trump signed an executive order to establish a Strategic Bitcoin Reserve and appointed crypto-friendly figures such as former SEC Commissioner Paul Atkins to key roles. His media firm has also filed to launch a crypto-focused ETF.
Srinivas L, CEO of 9Point Capital, expects the rally to continue. 'BTC has now broken out just as expected, and the bullish trend is kicking in. We expect BTC to touch $125,000 in this leg of the rally.'
In addition to the price surge, the market saw new developments including Robinhood launching ETH and SOL staking in the U.S., and Coinbase partnering with Perplexity AI to provide real-time crypto market data.
As long-term holders now control over 74% of total Bitcoin supply—marking a 15-year high—the market appears to be entering a new phase of sustained institutional accumulation and retail optimism.
Also Read:
52% of cryptos launched since 2021 are dead. What should investors focus on in 2025?
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: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
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Business Standard
a minute ago
- Business Standard
Trump gets economy he wants, but growth risks may spoil his victory lap
President Donald Trump is getting his way with the world economy. Trading partners from the European Union to Japan to Vietnam appear to be acceding to the president's demands to accept higher costs in the form of high tariffs for the privilege of selling their wares to the United States. For Trump, the agreements driven by a mix of threats and cajoling, are a fulfillment of a decades-long belief in protectionism and a massive gamble that it will pay off politically and economically with American consumers. On Sunday, the United States and the 27-member state European Union announced that they had reached a trade framework agreement: The EU agreed to accept 15 per cent US tariffs on most its goods, easing fears of a catastrophic trans-Atlantic trade war. There were also commitments by the EU to buy $750 billion in US energy products and make $600 billion in new investments through 2028, according to the White House. We just signed a very big trade deal, the biggest of them all, Trump said Monday. But there's no guarantee that Trump's radical overhaul of US trade policy will deliver the happy ending he's promised. The framework agreement was exceedingly spare on details. Most trade deals require months and even years of painstaking negotiation that rise and fall on granular details. High-stakes negotiations break Trump's way Financial markets, at first panicked by the president's protectionist agenda, seem to have acquiesced to a world in which US import taxes tariffs are at the highest rates they've been in roughly 90 years. Several billion in new revenues from his levies on foreign goods are pouring into the US Treasury and could somewhat offset the massive tax cuts he signed into law on July 4. Outside economists say that high tariffs are still likely to raise prices for American consumers, dampen the Federal Reserve's ability to lower interest rates and make the US economy less efficient over time. Democrats say the middle class and poor will ultimately pay for the tariffs. It's pretty striking that it's seen as a sigh of relief moment, said Daniel Hornung, a former Biden White House economic official who now holds fellowships at Housing Finance Policy Centre and the Massachusetts Institute of Technology. But if the new baseline across all trading partners is 15 per cent, that is a meaningful drag on growth that increases recession risks, while simultaneously making it harder for the Fed to cut. The EU agreement came just four days after Japan also agreed to 15 per cent US tariffs and to invest in the United States. Earlier, the United States reached deals that raised tariffs on imports from Vietnam, Indonesia, the Philippines and the United Kingdom considerably from where they'd been before Trump returned to the White House. More one-sided trade deals are likely as countries try to beat a Friday deadline after which Trump will impose even higher tariffs on countries that refuse to make concessions. Trump's long-held theory now faces reality The US president has long claimed that America erred by not taking advantage of its clout as the world's biggest economy and erecting a wall of tariffs, in effect making other countries ante up for access to America's massive consumer market. To his closest aides, Trump's use of tariffs has validated their trust in his skills as a negotiator and their belief that the economists who warned of downturns and inflation were wrong. Stocks rose slightly on Monday morning on tariffs that once seemed unthinkably risky. Where are the experts' now? Commerce Secretary Howard Lutnick posted on X. But the story is not over. For one thing, many of the details of Trump's trade deals remain somewhat hazy and have not been captured in writing. The US and Japan, for instance, have offered differing descriptions of Japan's agreement to invest $550 billion in the United States. The trade deals do seem to count as a qualified win for Trump, with other countries giving the US favourable trade terms while accepting US tariffs, said Eswar Prasad, a Cornell University economist. "However, certain terms of the deals, such as other countries' investments in the US, seem more promising in the abstract than they might prove in reality over time.' Trump is also facing a court challenge from states and businesses arguing that the president overstepped his authority by declaring national emergencies to justify the tariffs on most of the world's economies. In May, a federal court struck down those tariffs. And an appeals court, which agreed to let the government continue collecting the tariffs for now, will hear oral arguments in the case Thursday. And he's yet to reach an accord with China which has deftly used the threat of retaliatory tariffs and withholding exports of rare earth minerals that are desperately needed for electric vehicles, computer chips and wind turbines to avoid caving in to Trump's demands. The US and China are talking this week in Stockholm, Sweden. Economists remain sceptical of the impacts for US consumers There is also skepticism that tariffs will produce the economic boom claimed by Trump. Analysts at Morgan Stanley said the most likely outcome is slow growth and firm inflation, but not a recession. After all, the 15 per cent tariffs on the EU and Japan are a slight increase from the 10 per cent rate that Trump began charging in April during a negotiation period. While autos made in the EU and Japan will no longer face the 25 per cent tariffs Trump had imposed, they will still face a 15 per cent tax that has yet to appear in prices at US dealerships. The administration has said the lack of auto price increases suggests that foreign producers are absorbing the costs, but it might ultimately just reflect the buildup of auto inventories to front-run the import taxes. Dealers built stocks ahead of tariff implementation, damping the immediate impact on retail prices. That cushion is starting to wear thin, Morgan Stanley said in a separate note. Our Japan auto analyst notes that as pre-tariff inventory clears, replacement vehicles will likely carry higher price tags. Economist Mary Lovely of the Peterson Institute for International Economics warned of a slow-burn efficiency loss' as US companies scramble to adjust to Trump's new world. For decades, American companies have mostly paid the same tariffs and often none at all on imported machinery and raw materials from all over the world. Now, as a result of Trump's trade deals, tariffs vary by country. US firms have to change their designs and get inputs from different places based on these variable tariff rates,' she said. It's an incredible administrative burden. There's all these things that are acting as longer-term drags on economy, but their effect will show up only slowly.' Mark Zandi, chief economist at Moody's Analytics, said that the United States' effective tariff rate has risen to 17.5 per cent from around 2.5 per cent at the start of the year. I wouldn't take a victory lap,' Zandi said. The economic damage caused by the higher tariffs will mount in the coming months. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Mint
a minute ago
- Mint
If Trump's tariffs are so bad, where's the recession?
Donald Trump's trade policy is in danger of demonstrating the truth about one of those old definitions of an economist: someone who sees something working in practice and explains why it will never work in theory. We have been told, by adherents of diverse creeds of the dismal pseudoscience, that the president's sweeping tariff plans would be a short route to economic disaster: Smoot-Hawley, the Sequel. Set aside that the infamous 1930 legislation was probably only a mere contributor to the calamity that followed rather than its author, the history and received wisdom are clear, premised on basic economic principles: Tariffs are a tax that have especially adverse consequences—increasing prices paid by importers and, ultimately, consumers; and, because of the income effect of a tax rise, at the same time depressing demand. But even as the U.S. has been transformed in just six months into a high-tariff economy, there is scant sign of the economic disaster we were promised. Deals signed in the past week with two of our largest trading partners indicate that a 15% tariff is now the likely new floor for most U.S. imports, with higher duties still in place on some goods. Yet economists surveyed by the Journal this month estimate the economy grew by about 2% in the second quarter, accelerating out of the first three months of the year. They think the odds of a recession in the next year are just 1 in 3. Core inflation remains below 3%, down from 3.5% at the end of last year. Equity markets are reaching new highs as investors have recovered from their panic attack of April. Having broken most of the rules of politics, has Mr. Trump really smashed one of the supposedly iron laws of economics too? There are three possible answers: First, it's too early to tell. Most of the tariffs announced haven't been in place long. Strangely enough, the uncertainty from Mr. Trump's dizzying policy changes that was expected to have been especially destabilizing may be helping soften the blow. If importers aren't sure whether announced duties will stay or change, they may be holding off on big price increases until they have clarity. And as we saw with the outcome of the U.S.-Japan deal last week, when the actual tariff levels come in lower than the worst fears, the psychological effect can be positive; that odd feeling of contentment you get when you discover that the $100 bill you thought you had dropped on the sidewalk was only a $20. But still, for all the unclarity, the average tariff paid by importers has indeed risen sharply—to more than 15%, up from less than 3% a year ago, so far with limited adverse consequences. Which leads us to the second possibility—the tariffs thus far have just not been big enough to cause the harm economists warned us about from full-on protectionism. The U.S. is a relatively closed economy, with imports accounting for less than 15% of gross domestic product. Perhaps the U.S. economy is simply resilient enough to withstand even bad policy, more capable of withstanding a moderate tariff shock. But this is incomplete. The average 15% tariff rate now is historically large; five times the level that prevailed previously, it is close to the average rate of around 20% on all imports under Smoot-Hawley. If the economy were simply to shrug off that level of protection, could it be that we are missing something? So third, and tantalizingly, perhaps the conventional wisdom is wrong. Or, more precisely, since no one can deny the effect of taxes are real, perhaps, in their rush to emphasize the negatives, economists have overlooked the countervailing forces at work with tariffs: The redistribution of the burden of duties between foreign exporters, U.S. importers and consumers may be reordering the balance of benefit between domestic and foreign businesses and between companies and consumers. Federal tariff revenue up to $300 billion a year will produce gains for Americans. The relative advantage of doing business in the U.S. may, as promised, start to be reflected in stronger inward investment flows. The strikingly one-sided deal Mr. Trump just inked with the European Union certainly suggests the sheer economic muscle of the U.S. has been previously under-utilized in opening up markets overseas. At this point, only the first answer can be given in confidence: It is too early to tell. But if the second or third turns out to be true, if the U.S. shrugs off or even gains from its embrace of protectionism, it will represent another blow to the already battered reputation of what was recently the West's so-called economic consensus. The 2007-08 global financial crisis and its aftermath shattered faith in the post-Cold War economic certainties, the idea that human history had reached some ideological endpoint of progress. Collapsing faith in the democratic institutions of the West in the years since has shattered similar faith in the enduring supremacy of Western liberalism. If the world's largest economy can run supposedly discredited economic policies and still thrive, the policy orthodoxies of most of the past half century will have been shattered too. The rising voices of those who argue for a nationalist, statist, corporatist governing program will be able to add a dose of empirical evidence to their ideological arguments, as theory once again races to catch up with practice.
Mint
a minute ago
- Mint
Why is the India-US trade deal delayed? What does it mean for the Indian stock market? Explained
A trade deal between India and the US remains elusive, despite repeated claims from both sides in recent months that an agreement was within reach. The US, over the last few days, has signed trade deals with several major economies, including Japan and the European Union (EU). With China, the US had a tariff and export control agreement in May with August 12 deadline, which, according to experts, may be extended. According to Reuters, US and Chinese economic officials resumed talks in Stockholm, Sweden, on Monday. On the other hand, there has been no major breakthrough on the trade deal front between the US and India — at least none that has been made public. Last Thursday, July 24, the Ministry of External Affairs (MEA) said India and the US are working towards finalising the 'first tranche of a mutually beneficial, multi-sector Bilateral Trade Agreement (BTA).' Hopes were high that a trade deal between India and the US could be finalised before July 9, an earlier deadline set by US President Donald Trump for the tariffs to take effect. However, despite several rounds of talks and reports suggesting that President Trump was expected to make a final decision on the potential deal, no agreement materialised. A key point of contention has been the US's insistence on greater access to Indian markets for its agricultural, dairy, and genetically modified (GM) products. However, India has argued that such access could negatively impact the livelihoods of its farmers. "The US wants more access to India's agriculture market, particularly dairy products. India cannot and is unwilling to negotiate on this. Animal farming in India is a source of livelihood for millions, not a large-scale industry like in the Western world," VK Vijayakumar, Chief Investment Strategist at Geojit Investments, noted. Moreover, reports suggest that India is seeking lower tariff rates to gain a competitive edge over its Asian peers. Another possible reason for the delay in finalising the trade deal is the US's stance against countries importing oil from Russia. Last week, US Senator Lindsey Graham issued a stark warning that President Trump intends to impose steep tariffs on countries continuing to import oil from Russia. Experts still remain optimistic that India and the US will reach an agreement, even though it may take time and may even go beyond the August 1 deadline. After August 1, tariffs on Indian imports to the US will increase to 26 per cent. Both countries may first finalise a basic trade deal, while talks for a more comprehensive agreement could continue until October or November. According to media reports, a team of US negotiators is expected to visit New Delhi in the second half of August for the next round of discussions. Experts believe that a deal is important not only for India but also for the US because of geopolitical compulsions. "We believe that signing a trade deal amicably with India is equally important for the US for geopolitical compulsions. Therefore, we still hope that India would avoid any major risk on this front," G Chokkalingam, the founder and head of research at Equinomics Research Private Limited, observed. A further delay may keep the market under pressure due to elevated concerns about the country's widening trade deficit, potentially triggering ripple effects on the economy and the Indian rupee. On the other hand, a trade deal could serve as a short-term catalyst for the domestic market and may help it break out of the range it has been trading in for nearly two months. "If India signs a deal with the US and averts the 26 per cent reciprocal duties, then the market is likely to recover significantly. In case reciprocal duty is imposed, then the market is likely to remain weak in the short-term," said Chokkalingam. A trade deal between the two countries may also attract FPIs who have been on a selling spree of Indian equities this month. "Over the medium term, this could encourage increased FPI inflows into sectors like manufacturing, technology, and healthcare, particularly if supported by supply chain diversification and the ongoing 'China+1' strategy. Such a deal would also signal long-term economic stability and global integration, key factors for long-duration foreign investors," Aditya Sood, a fund manager at InCred Asset Management, told Mint. However, in the long term, the market will look for durable economic growth and a sustainable recovery in earnings to justify the elevated valuations. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
