Bitcoin News Today: Bitcoin's Bull Run Creates Perfect Storm, Triggering $1.08 Billion Short Liquidations

Bitcoin surged past $116,000 on September 29, 2025, triggering a record $1.08 billion in short liquidation intensity across mainstream centralized exchanges (CEXs), according to data from CoinGlasstitle6^[1]. This marked the largest single-day liquidation event of 2025, driven by leveraged short positions being wiped out as the cryptocurrency’s price broke through key resistance levels. The move reinforced Bitcoin’s (BTC) dominance in a market increasingly characterized by institutional adoption and macroeconomic tailwinds.

The price surge followed a period of consolidation after Bitcoin briefly dipped to $112,000 earlier in the week, which had already triggered $1 billion in liquidations. Analysts attributed the rapid rebound to a combination of institutional demand, favorable U.S. policy developments, and evolving market dynamics. Michael Saylor of MicroStrategy, now holding nearly 600,000 BTC, and broader corporate treasury strategies contributed to bullish momentum. Additionally, predictions from platforms like Kalshi projected a $141,000 target by year-end, aligning with growing optimism in the sector.

The liquidation event highlighted the fragility of leveraged positions in a volatile market. Short sellers, particularly those active in the $112,000–$120,000 range, faced mass liquidations as Bitcoin entered a “negative dealer gamma zone,” forcing market makers to buy BTC to maintain delta neutrality. This self-reinforcing dynamic accelerated the price rally, creating what experts described as a “perfect storm” for a bullish breakout.

Market participants also noted the role of U.S. dollar weakness and regulatory clarity in fueling the rally. While Bitcoin’s euro and pound-denominated prices lagged behind previous highs, the greenback’s relative underperformance contributed to dollar-based gains. Meanwhile, the Trump administration’s crypto-friendly policies and anticipated regulatory frameworks further bolstered institutional confidence.

Looking ahead, analysts remain divided on Bitcoin’s trajectory. While some predict continued upward momentum, others caution that technical indicators—such as divergences in the RSI and declining trading volume—suggest caution. The Crypto Fear & Greed Index, however, remains at “Greed” levels (70), reflecting persistent optimism among investors. If Bitcoin stabilizes above $119,500, it could trigger another wave of short liquidations totaling up to $3.07 billion, according to CoinGlass data.

The recent volatility underscores the risks of high leverage in crypto markets. Traders who overextended positions during Ethereum’s recent rally were particularly vulnerable, as market makers exploited stop-loss triggers to exacerbate sell-offs. Industry experts warn that the rapid growth of leveraged trading increases systemic risks, especially in a market where liquidity can shift rapidly.

As Bitcoin’s price continues to test new all-time highs, the focus remains on regulatory developments and macroeconomic cues. The Federal Reserve’s upcoming policy decisions, including the October 29 rate meeting, will be closely watched for signals on inflation and interest rates. Meanwhile, institutional players are expected to play an increasingly pivotal role in shaping Bitcoin’s long-term trajectory, with strategic announcements from U.S. political circles potentially catalyzing further volatility.