Bitcoin has shattered through the $112,000 barrier with the kind of explosive momentum that leaves short sellers scrambling for cover and long-term holders contemplating their newfound paper fortunes. The cryptocurrency’s ascent past this psychological milestone—briefly touching $113,000 on Thursday before rocketing to $116,000 and ultimately $118,000—represents more than mere numerical achievement; it signals a fundamental shift in how institutional America views digital assets.
The market’s reaction proved as dramatic as the price movement itself. Nearly $340 million in short positions evaporated during the initial surge, with Thursday’s climb to $118,000 triggering over $1 billion in liquidations. Bybit exchange bore the brunt with $461 million in mostly short positions liquidated, while Binance and HTX recorded $204 million and $193 million respectively. The largest casualty? An $88.5 million BTC-USDT short position on HTX—a sobering reminder that betting against Bitcoin‘s trajectory remains a perilous endeavor.
This rally, which began after Bitcoin first crossed $100,000 in December 2024, has lifted the entire cryptocurrency ecosystem. Ethereum surged nearly 10% while Solana climbed 6% over the past week, contributing to Bitcoin’s market capitalization reaching $2.25 trillion—dwarfing Ethereum’s $340 billion valuation.
The political landscape has shifted dramatically in cryptocurrency’s favor. President Trump’s election victory, built partly on crypto-friendly campaign promises, culminated in an executive order establishing a government strategic Bitcoin reserve. This policy pivot, combined with growing corporate adoption of Bitcoin as a treasury asset, has fundamentally altered market dynamics. The emergence of regulatory clarity in 2025 has fostered additional optimism and institutional confidence in the cryptocurrency market.
The surge reflects both speculative fervor and strategic positioning. Crypto ETFs and corporate treasuries have driven substantial demand, while long-term holders capitalize on price appreciation to realize profits. The broader economic environment, including tech stock performance that pushed the Nasdaq to new highs, has supported cryptocurrency markets. Strategy announced a purchase of an additional $530 million in bitcoin, demonstrating continued institutional confidence in the cryptocurrency’s long-term prospects. The SEC approval of Bitcoin ETFs in early 2024 has facilitated unprecedented institutional investment flows into the cryptocurrency space.
Yet beneath the euphoria lies a familiar pattern: volatile price movements that previously saw Bitcoin dip below $100,000 in June. Whether this surge represents sustainable growth or another speculative bubble remains the trillion-dollar question facing investors maneuvering cryptocurrency’s perpetually turbulent waters.
