Bitcoin News Today: Bitcoin Surges 18% to $118,000 Triggering $1 Billion in Short Liquidations

Bitcoin's price action last week was remarkable, surging past its previous highs to reach an unprecedented $118,000. This surge triggered over $1 billion in short liquidations, indicating a significant shift in market sentiment. The psychological barrier of $100,000 was breached, leading to a consolidation phase where profit-takers were replaced by buyers convinced of higher valuations. This transition suggests that the path to $250,000 may now be clear, as supply has migrated from weak to strong hands, allowing the price to run freely.

The manner in which bitcoin surpassed its previous high suggests that true price discovery is imminent. A prediction made by a legendary Crypto Twitter account, Cobie, in November of last year, resonates with the current market dynamics. Cobie stated that the hard road goes from $80,000 to $100,000, while the easy road goes from $100,000 to $250,000. This prediction aligns with the current market sentiment, where the $100,000 level acted as a powerful psychological barrier, attracting waves of profit-takers. Once these coins changed hands to buyers with higher valuation expectations, the path above six figures opened up, with the next significant level being a quarter-million dollars.

While bitcoin's surge has been the most notable, other cryptocurrencies, or alts, have also seen significant gains. Bitcoin dominance has decreased from a local high of 66% two weeks ago to about 64.3% on Friday, July 11. Ethereum broke the $3,000 mark, and all major cryptocurrencies, including Solana, XRP, and Binance Coin, have seen increases. Even memecoins, which had previously seen a decline, are making a comeback. Veteran Crypto Twitter trader Bluntz believes that one memecoin, SPX6900, is likely to be the first large-cap meme to retest its all-time high, implying that others may soon follow.

Last week also saw a battle between launchpads Pump.fun and Letsbonk.fun. The newcomer, Letsbonk.fun, has rapidly seized market share, commanding 70% compared to Pump.fun's 24%. This raises questions about whether Letsbonk.fun possesses a moat, or a sustainable competitive advantage. Pump.fun will close the public portion of its ICO on Saturday, July 12, after collecting $740 million from institutions and intending to raise $260 million from retail investors. However, given widespread expectations that private-sale participants will dump for a 4x day-zero gain, many are sitting this one out.

In conclusion, the recent surge in bitcoin's price, along with the gains seen in other cryptocurrencies, suggests that the market is in a bullish phase. The transition from weak to strong hands, along with the breaching of psychological barriers, indicates that the path to higher valuations may be clear. However, investors should remain cautious and avoid chasing laggards, instead focusing on the strongest performers in the market.