Bitcoin surged to a new all-time high above $112,000on Wednesday, breaking out of weeks-long consolidation after U.S.President Donald Trump called the Federal Reserve’s interest rates “at least 3points too high.” The move came amid a broader rally across crypto assets, withEthereum’s ether jumping 5% to $2,746, its highest in nearly a month.Earlier, the largest cryptocurrency gained 3% to $111,907, briefly reaching new record levels across majorexchanges including Binance, Coinbase, and Bitstamp.The breakout followed a prolonged period of pricecompression near $110,000, where previous rallies had repeatedly reversed astraders took profits and short positions mounted.Trump Comments Trigger Risk-On RepricingThe sudden upward move began just 30 minutes afterTrump posted on Truth Social that the current federal funds rate should belowered by 300 basis points (3%). He claimed such a cut would save $360 billionannually in refinancing costs. Bitcoin, which had been trading quietly earlierin the day, began climbing steadily following the post.No single cut in modern U.S. history has exceeded 100bps, and a 3% reduction in a growing economy could push inflation above 5%,weaken the dollar by over 10%, and cause housing prices to surge amid lowermortgage rates, Coindesk reported. Asset markets, including stocks and commodities, wouldlikely rally sharply in the short term—the S&P 500 could reach 7,000, and gold $5,000, but at the cost of longer-term macroeconomic stability.BREAKING: Bitcoin reaches new all-time high of $112,000 pic.twitter.com/4AxGaQgZN7— Watcher.Guru (@WatcherGuru) July 9, 2025Publicly Traded Crypto FirmsThe rally extended to publicly traded crypto firms.MicroStrategy (MSTR) climbed 4.4% to $414, approaching its 2025 highs but stillbelow last year’s $543 peak. Coinbase (COIN) rose 5%, while bitcoin miners RiotPlatforms (RIOT) and Marathon Holdings (MARA) added around 6% each.Related: Bitcoin Will Jump 25% and Hit New ATH This Quarter, Newest BTC Price Prediction SaysEther also drew investor attention, rising 5% to$2,746. Bitcoin’s climb also reflects its increasing role as ahedge against monetary uncertainty. Since Trump’s “Liberation Day” speech inApril, the asset has gained traction among investors positioning for inflationand geopolitical risk.While Bitcoin’s price has now set a new record,questions remain about its ability to hold above $112,000. The $110,000 zonecould flip into support if momentum continues, but traders are watching closelyfor signs of exhaustion or consolidation.This article was written by Jared Kirui at www.financemagnates.com.