July 11, 2025 – Bitcoin (BTC) has once again defied bearish expectations, soaring to a new all-time high of $118,000 on July 11, 2025, and triggering a staggering $1.2 billion in liquidations of short positions across cryptocurrency exchanges.
This unprecedented surge, which saw Bitcoin climb 4.8% in just 24 hours, has cemented its dominance as the world’s leading cryptocurrency, with market analysts attributing the rally to strong institutional demand, favorable macroeconomic conditions, and robust ETF inflows.
According to data from CoinGlass, a leading cryptocurrency data aggregator, the rapid price increase obliterated $1.2 billion in short positions across all cryptocurrencies, with Bitcoin alone accounting for over $687 million in liquidations within a single hour on July 10, 2025.
The largest single liquidation was an $88.5 million BTC-USDT short position on the HTX exchange, underscoring the intensity of the market’s bullish momentum.
The short squeeze began as Bitcoin broke through the $112,000 resistance level on July 9, climbing to $116,734 by July 10, before reaching $118,000 early on July 11.
This rapid ascent caught many bearish traders off guard, as short sellers betting against Bitcoin’s rise were forced to close positions at a loss, further fueling the rally.
Posts on X reflected the market’s sentiment, with one user noting, “Over $670M worth of short trades got liquidated in the last 24hrs after the $BTC new ATH. Highest liquidation event in years.
The surge in Bitcoin’s price has been driven by a confluence of factors.
Joe DiPasquale, CEO of BitBull Capital, highlighted the role of institutional demand, stating, “The Bitcoin rally is fueled by a combination of strong inflows into ETFs, renewed institutional demand, and a favorable macroeconomic environment, as investors anticipate Fed rate cuts.”
U.S. spot Bitcoin ETFs saw inflows of $142 million in a single day, according to SosoValue, signaling growing confidence from institutional investors.
Additionally, corporate adoption continues to bolster Bitcoin’s value, with companies like MicroStrategy, which holds 597,325 BTC valued at $69.29 billion at current prices, acting as a de facto ETF for the cryptocurrency.
A favorable regulatory environment and a “risk-on” market sentiment have also contributed to the rally.
President Donald Trump’s administration has been credited with policies supportive of cryptocurrency, further encouraging institutional participation.
Broader Market Impact and Future Outlook
The rally extended beyond Bitcoin, with the total cryptocurrency market capitalization reaching $3.47 trillion, approaching its all-time high of $3.73 trillion recorded in December 2024.
Altcoins also saw significant gains, with Ethereum (ETH) rising 8% to $2,970, Dogecoin (DOGE) up 6% to $0.192, and XRP gaining 12.86% to $2.81.
Analysts remain cautiously optimistic about Bitcoin’s trajectory.
Gerry O’Shea, head of global market insights at Hashdex, predicted, “New catalysts, including more institutional platforms allowing access to Bitcoin, may help drive the price of BTC to $140,000 or higher this year.”
Prediction markets like Kalshi also reflect bullish sentiment, pricing in a potential rise to $141,000 by year-end.
Despite the euphoria, some analysts urge caution.
The rapid liquidation of shorts and high leverage in the derivatives market, with open interest surpassing $78 billion, signal potential volatility.
One X user warned, “1 billion in shorts got liquidated yesterday… on the next pump for #bitcoin 2-3 billion will get liquidated, most ppl this cycle gonna be broke.”
Historical patterns suggest Bitcoin may face resistance as it approaches new milestones.
Analysts note that Bitcoin typically takes 211 days to reclaim a new all-time high after a previous peak, and with 145 days since its January 2025 high, further gains could be imminent.
However, the market’s high leverage raises the risk of sharp corrections.
Bitcoin’s meteoric rise to $118,000 has not only shattered previous records but also highlighted the cryptocurrency’s resilience and growing institutional backing.
As short sellers reel from massive liquidations, the market’s bullish momentum shows no immediate signs of slowing.
Investors and traders alike are now watching closely to see if Bitcoin can sustain its upward trajectory and reach the $140,000 mark forecasted by analysts.
Bitcoin is currently trading at $117,620 at the time of this writing.
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