Bitcoin reached a new all-time high over $111,000 before declining by 1.8% to approximately $108,531 following President Trump's announcement of a 50% tariff on the European Union. Analysts expressed that this rally has strong structural support, driven by institutional interest and low leverage in the market. Over $1.3 billion flowed into Bitcoin ETFs recently, indicating significant demand. However, market sentiment has shifted, with the percentage of traders betting on Bitcoin reaching $115,000 decreasing from 24% to 15.4% after the tariff news. Despite hesitation, analysts from QCP Capital noted that this rally differs from previous cycles, highlighting resilience in price action. Crypto exchange MEXC's COO acknowledged the structural soundness of this uptick, as Bitcoin’s market adoption increases, with 50 million Americans now owning Bitcoin compared to 37 million owning gold. The increase in trading volume reflects heightened investor activity, yet some analysts caution that a significant correction may still be ahead, suggesting this rally could simply be part of Bitcoin’s cyclical pattern rather than a definitive new trend.

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