Bitcoin surpasses $113,000 as investors embrace risk assets and liquidate shorts, driving record highs in cryptocurrency prices.

Bitcoin reached a new all-time high of $113,459.16 on Thursday, surpassing its previous record set just a day earlier.

The cryptocurrency increased by approximately 2% during the day, peaking at $113,863.18.

A total of around $318 million in short positions were liquidated on centralised exchanges within 24 hours, according to CoinGlass.

When traders short bitcoin and its price rises, they must buy back bitcoin to close their positions, contributing to further price increases.

Other cryptocurrencies also experienced gains, with Ether and Solana each rising by over 2%.

Tokens like Dogecoin and Cardano’s asset advanced by more than 5%, while XRP and Litecoin increased by 3%.

Bitcoin-related stocks saw similar growth, with mining companies Mara Holdings and Riot Platforms rising over 2%, and trading platforms Coinbase and Robinhood advancing by 4%.

Despite recent volatility, Bitcoin has maintained a price above $100,000 for over 60 consecutive days, aided by substantial inflows into bitcoin exchange-traded funds.

Public companies have also significantly increased their bitcoin purchases, outpacing ETF inflows in the second quarter.

The rally began as investors shifted to a risk-on approach, boosting the technology-focused Nasdaq Composite and positively impacting cryptocurrencies.