Bitcoin hit a new all-time high on Thursday, breaking through $118,000, and sparking the largest liquidation event of 2025 so far. With $1.13 billion in cryptocurrency positions liquidated within 24 hours, short sellers took the hardest hit, losing $1.01 billion, nearly 90% of the total liquidations.

Approximately 237,000 traders across major exchanges felt the burn, with the biggest individual loss being an $88.5 million Bitcoin-USDT short position on the HTX exchange.

Bitcoin futures led the charge with $590 million in forced closures. Ethereum futures were next with $241 million in liquidations. But the real damage came from Bybit, which absorbed a massive $461 million in total liquidations, with 93% of that being short positions. Binance wasn’t far behind, recording $204 million in liquidations, while HTX saw $193 million.

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Source: Coinglass

Short sellers betting against Bitcoin were caught off guard by the surge, with forced buying accelerating the price rise. This is classic market mechanics: when traders are forced to close their positions, it adds buying pressure, often driving prices even higher.

Bitcoin’s Momentum and Institutional Demand

Bitcoin’s price jumped despite initial weakness caused by stronger-than-expected U.S. employment data. The June non-farm payrolls report showed an increase of 147,000, well above the forecasted 110,000, raising concerns about potential interest rate hikes. However, Bitcoin quickly bounced back and continued its ascent to fresh highs.

Bitcoin is now in “price discovery” mode, meaning it’s pushing into uncharted territory with limited historical price levels for reference. And while it’s been a wild ride for traders, the growing institutional demand continues to support Bitcoin’s rise.

Institutional Inflows and Corporate Accumulation

Cumulative flows into U.S. spot Bitcoin ETFs have surpassed $50 billion, and July is proving to be another strong month for institutional inflows. Corporate treasuries, led by big names like Strategy, Tesla, and GameStop, are continuously adding Bitcoin to their balance sheets. This institutional demand not only supports Bitcoin during price corrections but also signals its growing role as a key investment asset.

The combination of ETF demand and corporate buying is creating a supply squeeze, with every dip below the six-figure mark being quickly bought up. As liquidity dries up and demand rises, Bitcoin’s price discovery process continues.

Altcoins Join the Party

As Bitcoin soared, many altcoins followed suit. Ethereum rose by 6.7%, Solana climbed 3.4%, and Dogecoin jumped 8%. XRP gained 5.5%, and Cardano posted a 13% increase. Litecoin rounded out the gains with a 4.4% move higher. The broader market context was supportive, with the S&P 500 and Nasdaq Composite posting record closes for the third time in four sessions. Meanwhile, gold futures hit a historic high of $3,370 per ounce.

A Bullish Outlook Ahead

Bitcoin’s open interest data suggests that traders are still positioning for more upside, with the long-short ratio remaining above 50%. With institutional demand, rising corporate holdings, and a supply squeeze, Bitcoin’s price discovery phase looks set to continue. So, buckle up, because the bull run may just be getting started.

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