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Bitcoin Blasts Past All-Time Highs, Wiping Out $1 Billion in Short Bets

Bitcoin Blasts Past All-Time Highs, Wiping Out $1 Billion in Short Bets

Bitcoin has shattered previous records, soaring past $118,000 and triggering over $1 billion in short position liquidations. This unprecedented surge, fueled by significant institutional adoption and a shift towards traditional financial market dynamics, marks a new era for the cryptocurrency, moving beyond its historically volatile "Wild West" reputation.

Bitcoin's Historic Ascent

Bitcoin's price has surged from approximately $70,000 to over $118,000, a remarkable 68% rally. This ascent has been characterized by a consistent decline in both realized and expected volatility, a stark contrast to previous bull runs. This shift suggests a maturation of the crypto market, aligning its behavior more closely with traditional financial markets where volatility tends to decrease during bull markets.

Institutional Influx and Market Maturation

  • ETF Dominance: BlackRock's iShares Bitcoin Trust (IBIT) now holds over 700,000 BTC, amassing $76 billion in assets under management in just 18 months. This makes IBIT the third-highest revenue-generating ETF for BlackRock, underscoring the massive institutional interest.
  • Record Inflows: U.S. spot Bitcoin ETFs, launched in January 2024, have attracted over $50 billion in net inflows, with cumulative net inflows exceeding $50 billion. This institutional presence is reshaping market structure.
  • Reduced Selling Pressure: Unlike past rallies, on-chain data indicates minimal selling pressure. Bitcoin exchange inflows have dropped to 18,000 BTC per day, the lowest since April 2015, and large holders (100+ BTC) have also significantly reduced their transfers to exchanges.

The Liquidation Cascade

The rapid price increase led to a massive liquidation event, wiping out over $1 billion in short positions. This marks the largest single-day wipeout of bearish bets in 2025. On July 10 alone, over $460 million in short positions were liquidated, catching many traders off guard. This reflexive dynamic, where rising prices trigger forced closures of short positions, further accelerates the upward momentum.

Bitcoin's Growing Market Cap

Bitcoin is now the sixth most valuable asset globally, with a market capitalization of $2.298 trillion, surpassing Alphabet (Google) and nearing Amazon. This milestone highlights Bitcoin's increasing prominence in the global financial landscape.

Macroeconomic Tailwinds and Future Outlook

The current rally is supported by macroeconomic factors, including a weakening U.S. dollar and expectations of rate cuts. While Bitcoin has reached new highs against the dollar, its performance against other assets like gold and the British pound still has room to grow. Experts suggest that the market is currently in a

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