Bitcoin Breaks $116K, Liquidates Nearly $1B in Shorts, as Market Eyes Higher Targets
Bitcoin has smashed through the $116,000 mark, notching a new all-time high on Thursday after repeatedly testing resistance near $113,800. The world’s biggest cryptocurrency has now almost doubled over the past year, rising from $57,899.
During the U.S. trading session, BTC touched $115,469, gaining 4.3% in 24 hours, according to CoinDesk data.
Shorts Take Massive Hit
CoinDesk’s Krisztian Sandor reported that Thursday’s price surge triggered nearly $950 million in liquidations for traders holding short positions—the highest single-day tally this year, based on CoinGlass data.
$140K Bets Emerge
Kalshi, a prediction market platform, is seeing increased bets that bitcoin could reach $141,000 by the end of 2025. This echoes analysis from Gerry O’Shea at Hashdex, who said:
“While the macro environment remains uncertain, we believe the bull market is far from over. New institutional platforms granting bitcoin access could push prices past $140,000 this year.”
MicroStrategy Reaps Billions
Michael Saylor, executive chairman of MicroStrategy, celebrated bitcoin’s rally, posting:
“The halls of eternity echo with the cries of those who sold their Bitcoin.”
MicroStrategy’s holdings have grown to 597,325 BTC since 2020. At Thursday’s record prices, those coins are valued at roughly $69.29 billion.
2017 Parallels, New Fundamentals
CoinDesk’s Nikhilesh De observed that Thursday’s euphoria recalls bitcoin’s 2017 run, when prices approached $20,000. Yet today’s market backdrop in 2025 differs dramatically:
- Higher interest rates
- Far more institutional involvement
- Bigger retail base
- Tighter regulatory scrutiny
Eyes on $120,000
Ryan Gorman of Uranium Digital suggested the rally could extend further, fueled by institutional treasury buying, President Trump’s pro-crypto stance, and the administration’s upcoming “Crypto Week.”
“Momentum is growing. Thin summer volumes mean price gaps can happen quickly. It wouldn’t shock me to see bitcoin hit $120,000 before next week ends.”
Policy Rumors Stir Market
Some traders attribute part of bitcoin’s rally to speculation around U.S. monetary policy. The Kobeissi Letter noted that a proposed 3% rate cut—recently floated by Trump—could lower U.S. interest costs but risk reigniting inflation and weakening the dollar.
Meanwhile, rumors swirl about Trump potentially replacing Fed Chair Jerome Powell before his term expires in 2026, which could accelerate rate cuts and boost demand for assets like bitcoin.
Derivatives Stay Calm
Despite bitcoin’s surge, perpetual futures funding rates remain neutral, signaling little excessive speculation so far, said Krisztian Sandor of CoinDesk. ByteTree CIO Charlie Morris remarked:
“Crypto feels quiet—but quiet bulls are the best bulls.”
Altcoins Lag Behind
Tom Carreras reported a relatively muted response from major altcoins. Still, several tokens stood out:
- SUI rose 12.4%
- PEPE gained 8.6%
- DOGE advanced 6.3%
Meanwhile, the CoinDesk 20 Index climbed 3.2%.
Options Market Points Higher
Omkar Godbole noted bitcoin is in a “negative dealer gamma zone” between $112,000 and $120,000. This means market makers may have to buy more bitcoin as prices rise, potentially accelerating gains.
Dollar Weakness Behind the Rally?
Some analysts caution that bitcoin’s new dollar record is partly driven by the greenback’s decline. BTC’s price remains below its all-time highs when measured in euros or pounds. One observer remarked:
“BTC’s new dollar ATH partly reflects the dollar’s devaluation.”
Crypto Stocks Surge
Helene Braun reported crypto-linked stocks gained alongside BTC’s rise:
- Robinhood (HOOD) and Coinbase (COIN) rose over 3%
- Mining firms like Hut 8, Bitfarms, and HIVE Digital climbed 4% or more
- New crypto IPO Circle (CRCL) was up 0.4%
Market Still Watching for Next Move
While the new all-time high is undeniably bullish, some technical indicators suggest caution. Daily RSI readings show bearish divergence, and trading volume has tapered off since January. Bitcoin also remains below its peaks relative to EUR and GBP.
Yet traders remember how many were skeptical during the last cycle, when BTC surged from $30,000 to $70,000. With bitcoin holding strong around $116,000, the market now waits to see whether the next target—$120,000—is within reach.
