Bitcoin shattered expectations on Thursday, surging to an unprecedented $116,664. The monumental rally was fueled by a powerful confluence of accelerating institutional demand, robust ETF inflows, and renewed political tailwinds from the Trump administration.
The latest price spike, which caught many traders off guard, triggered the highest wave of liquidations in years, signaling a decisive shift in market momentum. As of 11:15 PM ET, Bitcoin had already surpassed its earlier high of $113,734 set just hours prior. The world’s largest cryptocurrency is now up approximately 24% year-to-date, with analysts setting their sights on $130,000 as the next significant target.
According to 10X Research, market structure has turned decisively bullish. The firm noted in a client communication that a short-term breakout signal had been triggered, a pattern historically followed by median gains of 20%. This implies a potential price target near $133,000 by September.
“Our trading signals indicate that this short-term breakout carries a 60% probability of further upside over the next two months,” Markus Thielen, founder of 10X, told.
The landscape has been quietly shifting behind the scenes. Implied volatility recently reached its lowest levels in months, providing traders with inexpensive access to upside bets. Simultaneously, many traders found themselves underexposed following June’s options expiry, leading to a frantic scramble to reposition.
Over $1 Billion in Short Positions Liquidated
Adding significant fuel to the rally, over $1.14 billion in leveraged positions were liquidated in the past 24 hours alone, according to data from CoinGlass. A staggering $1.02 billion of this came from short traders.
Bitcoin accounted for more than half of the total carnage, with $591 million in liquidations. Ethereum also saw substantial losses at $241 million wiped out, while smaller tokens such as Hyperliquid, Solana, and XRP experienced heavy liquidations.
Trump Policies and $15 Billion in ETF Buys Propel Rally
This new wave of volatility coincides with the increasing traction of President Donald Trump’s crypto-friendly policies. In March, the president signed an executive order aimed at establishing a national crypto reserve. His administration has since appointed pro-crypto advocates to pivotal positions, including Paul Atkins at the SEC and David Sacks as AI policy lead.
Furthermore, Trump-linked businesses are deepening their involvement in the crypto space. Trump Media & Technology Group recently filed to launch a crypto ETF that would hold multiple tokens, including Bitcoin.
With steady ETF demand, easing macroeconomic conditions, and supportive regulatory tailwinds, many traders now view this breakout as the genesis of a broader uptrend.
“Bitcoin may be transitioning into a higher trading range,” Thielen stated. He added, “Since mid-April, Bitcoin ETFs have bought $15 billion worth of BTC and they are causing prices to rally.”
As crypto markets reignite, all eyes are now on next week’s US CPI print and the commencement of “Crypto Week” in Washington. Both events could provide fresh catalysts, or introduce new risks, for the world’s most closely watched digital asset.
July 2025, Cryptoniteuae
