Bitcoin surged to a fresh all-time high of$111,544 during early Asian trading on Thursday, marking a 4% jump from Wednesday's peak. The rally follows a dip to$106,000 earlier in the week and reflects rising interest in alternative assets amid global financial uncertainty.

The immediate driver appears to be weak demand for the US Treasury's$16 billion 20-year bond auction, which pushed yields above 5.1%. Falling trust in long-term government debt has driven a shift in sentiment, with US and Japanese yields rising sharply.

Bitcoin's rise has been supported by several macroeconomic factors, including softer US inflation, a cooling of US-China trade tensions, and Moody's downgrade of US sovereign debt. Analysts suggest risk assets could benefit over the coming months if uncertainty continues to shake traditional markets.

On-chain data confirms increasing demand. Bitcoin's realised market cap rose by$27 billion in May, while exchange inflows dropped 82% since November.

Institutional interest is also growing, with over$4.24 billion flowing into Bitcoin ETFs in the past month and major firms like Strategy boosting their holdings to$63 billion.

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