Bitcoin News Today: Bitcoin's Short Liquidations Fuel Self-Reinforcing Price Surge

Bitcoin short liquidations reached $81 million in a single hour on July 10, 2025, as the cryptocurrency surged past $118,000, triggering a record $1.01 billion in short positions liquidated across exchanges in the preceding 24 hours. The rapid price rally, driven by renewed optimism in crypto markets and macroeconomic signals, resulted in an overwhelming majority of liquidations targeting bearish bets, with 93% of Bybit's $461 million in total liquidations attributed to short positions BTC News: Bitcoin Nears $118K, Sets Fresh Highs as …^[1]. HTX recorded the largest single liquidation of $88.5 million, highlighting the aggressive nature of traders betting against the rally Short liquidations reach 2025 peak as BTC charts new …^[2].

The liquidation event marked the largest short-side wipeout of 2025, with Bitcoin futures accounting for $590 million in losses, followed by ether futures at $241 million. Open interest in BTC-tracked futures rose $2 billion in four hours, with bullish positions dominating 52% of the long-short ratio, indicating heightened confidence in further price increases BTC News: Bitcoin Nears $118K, Sets Fresh Highs as …^[1]. The rapid liquidations accelerated upward momentum as forced selling by short sellers pushed prices higher, creating a self-reinforcing cycle.

Data from CoinGlass revealed that 237,000 traders were liquidated within 24 hours, with nearly 90% of liquidated positions being shorts. Bybit and HTX bore the brunt of the losses, followed by Binance and HTX. Short liquidations occur when traders borrow capital to bet against rising prices, only to face forced closures as markets move against their positions. This dynamic not only locks in losses but often amplifies upward trends by injecting liquidity into the market BTC News: Bitcoin Nears $118K, Sets Fresh Highs as …^[1].

The surge in Bitcoin's price to record highs was accompanied by broader market strength, as ether and other altcoins also rose. Analysts attributed the rally to renewed policy optimism in the U.S. and robust equity markets. The event underscored the growing institutional and retail participation in crypto derivatives, with derivative open interest for BTC rebounding to $38 billion Short liquidations reach 2025 peak as BTC charts new …^[2]. Futures volumes for Bitcoin exceeded $59 billion in the past 24 hours, surpassing Ethereum activity and reinforcing Bitcoin's dominance at 62.6% of the market Short liquidations reach 2025 peak as BTC charts new …^[2].

High-profile traders faced significant losses during the rally. James Wynn, a well-known whale, was liquidated on a 40X leveraged short position after Bitcoin refused to retrace from its peak. Similarly, @qwatio, another prominent trader, closed all perpetual futures positions, having incurred $16.72 million in losses from prior short attempts Short liquidations reach 2025 peak as BTC charts new …^[2]. These cases highlight the risks of leveraged trading in a market characterized by rapid price discovery and unpredictable volatility.

The liquidation event reflects a broader shift in trader sentiment, with bullish positioning dominating despite lingering macroeconomic uncertainties. While some analysts caution against overreliance on speculative bets, the data suggests that institutions and whales are increasingly treating Bitcoin as a safe-haven asset. The absence of extreme greed indicators in market sentiment metrics indicates that the current rally remains grounded in tangible demand, though further volatility cannot be ruled out Short liquidations reach 2025 peak as BTC charts new …^[2].