Bitcoin (BTC) surged to an all-time high of $116,500 on Thursday, delivering a brutal blow to short-sellers across the crypto market. In just 24 hours, more than $1 billion in short positions were liquidated, marking one of the largest single-day wipeouts for bearish crypto traders in 2025.
According to data from CoinGlass, $1.01 billion worth of short positions were cleared out between Wednesday and Thursday. Of this, Bitcoin alone accounted for $570 million, while Ether (ETH) contributed $206.93 million to the tally. Over 232,000 traders were impacted by the liquidation event.
The short squeeze comes as Bitcoin continued its relentless rally, breaking records for the second consecutive day. After reaching $112,000 on Wednesday, the crypto giant hit a fresh high of $116,500 on Thursday, catching short-sellers off guard and leading to widespread panic exits.
Massive Short Squeeze Leaves Traders Reeling
The liquidation wave was driven by a massive short squeeze, a scenario where rapid price increases force short-sellers to cover their positions, buying back the asset at higher prices and further accelerating the rally. The squeeze was particularly intense in the Bitcoin and Ethereum markets, with traders betting on a reversal that never came.
Daan Crypto Trades, a well-known analyst on social media platform X (formerly Twitter), called it a “MASSIVE short squeeze on BTC & ETH.” Crypto commentator Velo noted the widespread panic and rapid action: “Lots of emails are being sent.”
The sentiment was echoed by crypto influencer Miles Deutscher, who simply noted, “Bears in disbelief,” as the market punished those expecting a correction.
Key Liquidation Figures (Last 24 Hours)
| Asset | Liquidated Shorts | Liquidated Longs | Total Liquidations |
|---|---|---|---|
| Bitcoin (BTC) | $570 million | ~$19 million | $590 million |
| Ether (ETH) | $206.93 million | ~$1 million | $208 million |
| Other Altcoins | ~$233 million | ~Varies | ~$250 million |
| Total | $1.01 billion | $20.21 million | $1.03 billion |
Source: CoinGlass (as of July 11, 2025)
What Triggered the Rally?
Several factors converged to create a perfect storm for short-sellers and fuel Bitcoin’s upward movement:
1. Macroeconomic Optimism
Despite ongoing inflation concerns globally, the U.S. Federal Reserve’s signal last week to hold interest rates steady offered some relief to risk assets, including cryptocurrencies. Bitcoin responded strongly, with capital flowing back into the crypto market amid expectations of policy easing by year-end.
2. Institutional Inflows
Exchange-traded fund (ETF) activity around spot Bitcoin products remained elevated throughout the week. BlackRock’s Bitcoin ETF reported net inflows of over $500 million in the past three days alone, further signaling institutional confidence in the asset.
3. High Demand in Asia and Middle East
There has been a significant increase in Bitcoin purchases from Asian and Middle Eastern exchanges. Analysts believe that regional wealth is increasingly looking to hedge geopolitical risk and inflation using decentralized assets like Bitcoin.
4. Technical Breakout
BTC broke through a key resistance level at $110,000, triggering algorithmic buys and margin position adjustments that cascaded into further price acceleration. Once it passed the $112,000 threshold, liquidation levels clustered between $113K and $115K were quickly swept.
Market Capitalization and Sentiment
As of Thursday, the total global cryptocurrency market capitalization surged 4.4% to $3.63 trillion, according to CoinMarketCap. Bitcoin alone represents over 50% of this figure, with a dominance index of 52.6%.
The Crypto Fear & Greed Index, a tool that measures market sentiment, remained firmly in the “Greed” territory with a score of 71. While slightly down from last week’s score of 73, it reflects continued bullish momentum and investor confidence.
Analysts’ Mixed Views Before the Surge
Just days before Bitcoin’s rally, analysts were divided on whether the asset had enough momentum to break past its previous highs.
Bitfinex analysts on Tuesday noted that Bitcoin was showing a “lack of follow-through strength,” with traders hesitant to push prices higher without fresh macroeconomic catalysts.
“Prices are stalling. Bulls are hesitant or unable to push prices significantly higher without clearer macro signals,” they said, as Bitcoin hovered around $108,500.
In contrast, MN Trading Capital founder Michaël van de Poppe expressed optimism as early as June 30. He stated that “the inevitable breakout to an ATH [All-Time High] might even happen during the upcoming week,” which turned out to be prescient.
Historical Context: Largest Liquidation Events
This week’s $1.01 billion short wipeout stands as one of the largest in recent months. However, it pales in comparison to some historic crypto liquidations, such as:
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February 3, 2025: Over $2.24 billion in crypto positions were liquidated after geopolitical tensions escalated due to U.S. trade tariffs signed by President Donald Trump.
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May 2021: During the infamous “crypto crash,” over $10 billion in leverage was wiped out in a matter of days.
Still, the current liquidation event underscores the extreme volatility and leverage risk inherent in cryptocurrency markets.
What’s Next for Bitcoin and Crypto?
Traders now face a critical juncture. Bitcoin’s continued upward trajectory has left many wondering whether this bull run has more steam or if a correction is due.
Key Resistance Levels
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Immediate Resistance: $118,000
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Psychological Level: $120,000
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Extended Target (Q3 2025): $130,000
Key Support Levels
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First Support: $112,000 (where many long positions are now at risk)
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Second Support: $108,500
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Strong Base: $100,000
According to CoinGlass, roughly $2.11 billion in long positions are currently vulnerable to liquidation if Bitcoin drops back to $112,000, the level it cleared just a day prior. This sets up the possibility for significant volatility in the days ahead.
Risk Factors for the Coming Weeks
While the crypto market has clearly entered a bullish phase, several risks remain on the horizon:
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Profit Booking: Traders may begin taking profits at higher levels, triggering minor corrections.
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Regulatory Overhang: The global regulatory environment remains uncertain, especially in the U.S. and Europe.
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Macroeconomic Shocks: Any surprises in inflation data, interest rate announcements, or geopolitical developments can alter sentiment.
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ETF Dynamics: Sudden changes in ETF net inflows or outflows can create short-term price swings.
Industry Response
The crypto industry responded with excitement and caution. Exchanges like Binance and Coinbase reported record trading volumes for the week. Meanwhile, DeFi platforms saw a surge in stablecoin lending activity as traders sought liquidity to reposition in the rally.
Meanwhile, security experts warned users to remain cautious amid high market activity. “Scammers tend to exploit these volatile periods,” said a spokesperson from Chainalysis. “Avoid unfamiliar projects promising overnight returns.”
Conclusion
Bitcoin’s climb to $116,500 has triggered a dramatic reshuffling in the crypto market. A short squeeze of over $1 billion in liquidations exposed the risks of leveraged trading and the ferocity of crypto bull runs.
As traders adjust their strategies and markets digest the explosive move, all eyes are now on whether Bitcoin can hold above $115,000 and reach $120,000—or if the bulls will need to regroup before the next leg up.
One thing is clear: the crypto market is back in full swing, and its latest chapter is being written with volatility, opportunity, and caution in equal measure.
🔗 Visit Official Website for Real-Time Liquidation Data: CoinGlass
3 Key Takeaways
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Bitcoin hit a record high of $116,500, triggering $1B in short liquidations.
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Over 232,000 traders were affected, with BTC and ETH leading the wipeout.
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Crypto market cap surged 4.4% to $3.63 trillion amid bullish momentum.
ALSO READ: Bitcoin Price Analysis: 11 July 2025 Update
