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Even as Bitcoin (CRYPTO: BTC) has hit a new all-time high above $111,000, driven by surging institutional demand, tightening supply, and macroeconomic tailwinds, experts caution the rally isn't without structural risks, including the looming threat of quantum computing.

What Happened: Bitcoin surged to a new record of $111,544 on Wednesday, extending its post-halving uptrend and highlighting its growing appeal to institutions amid dovish macro signals.

The cryptocurrency was last trading at $111,000, up roughly 1% for the day.

The broader market also gained, with Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), XRP (CRYPTO: XRP), and BNB (CRYPTO: BNB) up 5%, 6%, 3.4%, and 4.6%, respectively.

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However, market sentiment at 72 nears extreme greed, making growth susceptible to pullbacks, especially amid a U.S. government bond sell-off.

What Experts Are Saying: Analysts say the rally is being powered by real spot demand and record ETF inflows, not leverage or hype.

Bitget Research's Chief Analyst Ryan Lee said the rally "reflects a regime shift," citing ETF-driven accumulation and a post-halving supply crunch.

"Institutional adoption is accelerating, and regulatory clarity, particularly progress on the GENIUS Act is reinforcing market confidence," Lee noted, although he warned that "a stronger U.S. dollar or fresh geopolitical tensions could easily knock momentum off course."

The rally has pushed the total crypto market capitalization briefly past $3.5 trillion.

Still, FxPro's Alex Kuptsikevich cautioned that the absence of FOMO means growth may remain fragile.

"Sentiment at 72 is near the extreme greed zone. That often precedes corrective pullbacks," he said.

Bitfinex analysts noted the breakout above $109,500 was driven by "clean spot demand, ETF inflows, and a macro backdrop that favors risk-on assets."

They added that funding rates remain stable and open interest is rising in line with price—hallmarks of a structurally sound rally.

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What’s Next: Yet, not all analysts are focused on short-term price moves.

David Carvalho, CEO of Naoris Protocol, warned that quantum computing is a "credible existential threat" to Bitcoin's long-term integrity.