BTC Surges Past $116,000 Amid Mixed Signals

Bitcoin has just crossed the $116,000 mark, reaching an unprecedented high that triggered massive liquidations in the derivatives market. This rapid surge exposes the extreme vulnerability of short positions, wiped out by the strength of the bullish movement. Beyond the technical shock, this historic breakthrough raises questions about the market’s equilibrium and the new power of institutional flows.

Short Sellers Trapped by the Speed of the Rise

While Bitcoin briefly hit $112,000 on July 9, crossing the $116,000 mark on July 10 triggered a chain reaction in the derivatives markets. Within hours, short sellers suffered massive losses, unable to anticipate the scale of the bullish movement. This scenario, already observed in the past, occurred here with a rarely reached intensity.

Here are the key facts, according to data from CoinGlass and Coinbase :

• +4.8 % in 24 hours : the Bitcoin price surged to reach $116,734, according to Coinbase, after several weeks of stagnation below $112,000 ;
• $560 million liquidated in just one hour, according to CoinGlass data, mainly on short positions ;
• $425 million of these liquidations involve exclusively short positions, signaling strong downside exposure ;
• In the last 24 hours, $912 million worth of positions have been liquidated across the crypto marke t;
• Among these losses, $542 million correspond to short positions on Bitcoin only, representing the overwhelming majority ;
• Only about $5 million of these losses are linked to long positions, confirming the asymmetry of the movement.

This cascading liquidation phenomenon, fueled by leverage, has strengthened the bullish dynamic. When short sellers are forced to close their positions, they inadvertently feed the price rise, a well-known process in speculative markets.

This bullish vicious circle is evidence of the severity of reversals that a highly reactive crypto market can generate, even when facing seasoned investors.

The ETF Effect and the Massive Arrival of a New Audience

Beyond liquidations, several fundamental drivers explain the current market strength. Joe DiPasquale, CEO of crypto management company BitBull Capital, notes that “we are probably on the way to even higher levels”.

He attributes this movement to a combination of powerful factors: “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,” he stated.

These ETF inflows, recorded over several days, signal renewed confidence from major market players. At the same time, the return of a “risk-on” climate benefits cryptos as a whole. Several altcoins illustrate this: Ethereum rises nearly 8 % to $2,970, Dogecoin jumps 6 % to $0.192, and XRP gains 5.5 % to $2.55, showing a general market recovery beyond Bitcoin alone.

This setup could create a new phase of institutional accumulation or even trigger a more structural revaluation of cryptos. However, it also carries risks: excessive dependence on ETF flows, overconfidence linked to monetary policies, and still latent volatility.