Bitcoin News Today: Bitcoin's $117k Crossroads: Institutional Buys vs. $563M Liquidation Risk

Bitcoin's price movements around the $117,000 threshold have triggered significant liquidation pressures on mainstream centralized exchanges (CEXs). According to ChainCatcher and Lookonchain data, if Bitcoin drops below $117,000, the cumulative long liquidation intensity on major CEXs will reach $563 million . Conversely, if prices rise above $120,000, the short liquidation intensity could reach $737 million . These figures highlight the concentration of leveraged positions at critical price levels, with cascading liquidations amplifying market volatility.

The recent surge to $117,000 saw over $1 billion in short liquidations, driven by institutional buying and macroeconomic factors. BlackRock's $500 million Bitcoin purchase, for instance, offset retail panic selling, stabilizing the market amid a 0.9% month-on-month rise in U.S. PPI inflation Bitcoin Surges To $117K, Triggers $1B Liquidation Wave^[1]. Institutional activity has become a defining feature of Bitcoin's price action, with ETF inflows nearing equity market liquidity levels, signaling maturing demand for BTC and ETH Bitcoin Surges To $117K, Triggers $1B Liquidation Wave^[1].

Technical analysis underscores the significance of the $117,000 level. A breakdown below this threshold could confirm a double-top pattern, with measured price targets pointing toward $113,000–$115,000 support Bitcoin Holds $117K After $1B Liquidations^[2]. Conversely, a sustained close above $119,500 would reset bullish momentum. On-chain data also reveals strong long-term holder (LTH) accumulation, with wallets holding 100–1,000 BTC driving a three-month rally, suggesting structural support for Bitcoin's price .

The interplay between macroeconomic tailwinds and speculative positioning further complicates the outlook. The U.S. dollar's 11% decline in 2025 has bolstered Bitcoin's appeal as a hedge against fiat devaluation Bitcoin’s tug of war: futures speculation vs. long-term accumulation^[4]. However, sticky inflation data has raised concerns about delayed Fed rate cuts, pressuring risk assets. Meanwhile, geopolitical uncertainties, such as U.S.-Russia peace talks, could inject additional volatility, with historical precedents showing sharp BTC sell-offs followed by rebounds Bitcoin Holds $117K After $1B Liquidations^[2].

Analysts note that while Bitcoin's 634% rally from cycle lows is robust, its underperformance relative to gold and the Nasdaq highlights structural challenges. On-chain metrics, however, remain resilient, with over 90% of BTC in long-term storage and consistent ETF absorption reinforcing market stability Bitcoin Holds $117K After $1B Liquidations^[2].