Bitcoin Defies Gravity: BTC Soars Past $116K as Bulls Clash With Skeptics

Bitcoin just pulled off its most audacious price rally of 2025—smashing through $116,000 like Wall Street's resistance levels were made of tissue paper. Here's why traders are equal parts euphoric and nervous.

The Bull Case: Liquidity Tsunami

Institutional inflows hit record highs this week as macro uncertainty drives capital into crypto's 'digital gold' narrative. Even traditional finance dinosaurs are quietly adding BTC exposure—though they'll never admit it at cocktail parties.

The Bear Trap: Overleveraged Markets

Derivatives data shows perpetual swap funding rates approaching dangerous territory. Remember March 2024? Yeah, the market doesn't either. CEX open interest now mirrors levels last seen before the 40% flush that vaporized degenerate longs.

Regulatory Swordplay

The SEC's latest enforcement blitzkrieg missed crypto entirely—too busy chasing a 78-year-old bond trader for insider trading. Priorities, people.

Closing Thought: This rally's got more mixed signals than a Goldman Sachs analyst report. Buckle up.

In brief

• Bitcoin breaks a new historic high at $116,734, marking a 4.8 % increase in 24 hours, according to Coinbase.
• This spectacular rise triggers a massive wave of liquidations, with over $912 million in positions liquidated within 24 hours.
• Short sellers are the main victims: $425 million liquidated on Bitcoin in just one hour.
• Meanwhile, several altcoins show significant gains, such as Ethereum (+8 %), Dogecoin (+6 %), and XRP (+5.5 %).

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.

Maximize your Cointribune experience with our "Read to Earn" program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.