• Bitcoin saw a 5% daily surge that pushed BTC to a new all-time high above $118,000.
• The sudden gains had shorts wiped out, with over $1.1 billion in short positions liquidated in 24 hours.
• A trader on HTX was liquidated for $88 million.

A spark of bullish momentum has seen Bitcoin smash through the $118,000 mark today, setting a new all-time high.

The sharp move that had BTC moving from off the $110k low has triggered a massive wave of liquidations, which have wiped out over $1 billion in short positions across the cryptocurrency market in the past 24 hours.

The surge, fueled by institutional demand, regulatory clarity, and macroeconomic shifts, has sent shockwaves through the crypto space, leaving traders and analysts scrambling to predict what’s next for the world’s largest digital asset

Shorts see red amid $1.2 billion in liquidations

Bitcoin, the crypto market’s bellwether, surged to a new all-time high of $118,403 on Friday, July 2025.

Robust institutional demand and $1.18 billion in net inflows to Bitcoin spot ETFs on July 10 highlighted this move.

Macro headwinds, with investors factoring in possible Fed rate cuts, have also added to the upside fuel.

This rally triggered a massive short squeeze, with over $1.2 billion in crypto liquidations in the past 24 hours, a 140% increase from the prior day.

The most dramatic fallout from Bitcoin’s surge was the annihilation of short-sellers.

Over $1.11 billion in short contracts were liquidated in the past 24 hours, with $635 million tied to Bitcoin and $208 million to Ether, affecting 269,681 traders.

One notable casualty was a single trader on the HTX exchange, whose $88 million short position was wiped out, underscoring the intensity of the market’s upward momentum.

Whales make moves as Bitcoin surges

With Bitcoin breaking a new all-time high, large holders were keen to keep hold of their windfalls.

It included a Binance whale’s “powerful punch” that helped the market higher. CryptoQuant highlighted this in a post on X.

“Until recently, whales on the US-based Coinbase exchange were driving the market, but today’s surge was driven by a significant move from a major whale on the Binance exchange,” said CryptoQuant’s DanCoinInvestor.

While others bought BTC, some scrambled to preserve their positions amid massive liquidations.

According to Lookonchain, a whale who was down by more than $10 million on a 1,135 BTC or $132.65 million short position, opted to deposit more funds to avoid liquidation.

The whale added the $5.5 million USDC to his position on Hyperliquid with a new liquidation price of $121,080.

James Wynn, recently in the headlines for major losses, has also seen positions wiped out in the last 24 hours.

James Wynn’s $BTC short position got fully liquidated in less than 12 hours, resulting in another loss of $27,921.63!https://t.co/205yuTcrz1 pic.twitter.com/AyVORksque

— Lookonchain (@lookonchain) July 11, 2025

As BTC eyes further gains, analysts are saying the supply-side dynamics are tightening.

For instance, Glassnode has noted that long-term holders and smaller entities are accumulating Bitcoin faster than its issuance rate.

This accumulation, coupled with compressed volatility across all timeframes, has set the stage for Bitcoin’s breakout, with analysts eyeing $120,000 as the next psychological target.

The market has no mercy on Bitcoin (BTC) short traders as a new uptrend is brewing in response to the rise in Open Interest (OI) observed overnight. This trend was predicted by market analyst CrediBULL Crypto who noted that the trends around Bitcoin volume have set the stage for a nice squeeze that can drive price upward.

Bitcoin (BTC) Resilience Hurting Short Sellers

The current price action of Bitcoin is posing a serious threat to the capital base of short sellers. The coin is currently trading at $35,217.97, up by 2.3% as trading volume soared by 11.89% to $15,318,050,817.

With this trend, short traders are notably being obliterated as showcased by the chart shown below. This chart potentially stems from the perpetual takers who have refused to sell, decreasing funding in the futures market. 

To put it in proper perspective, data from CoinGlass shows that a total of $50.31 million worth of crypto has been liquidated in the past 4 hours. While long traders still dominate this liquidation with $29.47 million, the proportion of the volume from short traders liquidated has grown to $21.02 million. 

The dynamics even present a more interesting shift in the past hour as the liquidated volume from short sellers is $14.43 million, far outpacing that of the longs at $1.33 million. Commenting on this trend, CrediBULL Crypto noted that there will be little resistance moving forward, but that the $35,400 level is one key level to keep an eye on.

Optimism Around Bitcoin Remain

CrediBULL Crypto is one of the mainstream crypto analysts with deep convictions that Bitcoin is primed for its next major rally. While hurdles cannot be ruled out for Bitcoin in its journey up, the analyst forecasts the $34,600 as a local invalidation level or support zone to watch.

Bitcoin’s outlook is worth keeping an eye on seeing the premier coin has grown by 114% year to date. As market stakeholders keep up anticipation for a potential approval of Bitcoin spot ETF by the US SEC, the imbalance in capital usage in the futures market can serve as a trigger to watch out for in the near term.

As the year journeys to a close, more inherent volatility are imminent but the ETF sentiment, complemented by the upcoming halving can help Bitcoin (BTC) pull a remarkable bullish stunt.

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Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture. Follow him on Twitter, Linkedin

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.