Bitcoin News Today: Bitcoin Surges 2.5% to $120,998 Triggering $812.7 Million in Liquidations

Overnight between July 17 and 18, 2025, Bitcoin's price surged past the $120,000 mark, reaching a high of $120,998. This rapid increase, representing a daily gain of 2.5%, triggered a significant wave of liquidations across the crypto market. The total value of liquidations reached $812.7 million, with the majority of losses, $483 million, incurred by traders holding short positions. Those with long positions lost $329.7 million, highlighting the high-stakes nature of leveraged trading during sharp market movements.

The largest single liquidation occurred on an exchange, where a position worth nearly $51 million was forcibly closed. In total, 174,391 traders had positions liquidated across the market during the same 24-hour period. The top three platforms by total liquidation losses were Binance, Bybit, and OKX. By asset, Ethereum led liquidations with $238 million, followed by Bitcoin with $146 million, and XRP with $102.5 million. This intense market action attracted both new entrants and institutional investors seeking exposure to the ongoing crypto bull run.

Amid the surge in cryptocurrency prices, the total crypto market capitalization surpassed the $4 trillion mark for the first time, setting a new historic record. This level nearly matches the valuation of the world’s most valuable public company, which stood at nearly $4.2 trillion as of July 18, 2025. The surge in Bitcoin's price has been particularly notable, with the cryptocurrency breaking through the $120,000 mark. This price movement has had a ripple effect across the broader crypto market, with other major cryptocurrencies also experiencing significant price increases. The rapid appreciation in Bitcoin's value has led to a surge in demand for the asset, as investors seek to capitalize on the price gains.

The liquidations have primarily affected traders who had taken short positions on Bitcoin, betting that the price would decrease. As the price surged, these traders were forced to close their positions, leading to a wave of selling pressure. The liquidations have also affected traders who had taken leveraged long positions, as the sudden price increase led to margin calls and forced selling. The market's reaction to the liquidations has been mixed, with some analysts suggesting that the forced selling could lead to a correction in Bitcoin's price. However, others have argued that the liquidations are a natural part of the market's price discovery process and that the underlying fundamentals of Bitcoin remain strong. The liquidations have also highlighted the risks associated with leveraged trading, as traders who had taken on significant leverage found themselves unable to meet margin requirements.

The surge in Bitcoin's price has also led to increased interest in the asset from institutional investors. The recent approval of a Bitcoin ETF has opened the door for institutional investors to gain exposure to the asset. The ETF has seen significant inflows, with investors pouring in $546 million in the past 24 hours. The inflows have been driven by a combination of factors, including the recent price surge and the growing acceptance of Bitcoin as a legitimate investment asset. The liquidations and the surge in Bitcoin's price have also had an impact on the broader crypto market. Other major cryptocurrencies, such as Ethereum, have also experienced significant price increases, as investors seek to capitalize on the market's bullish sentiment. The liquidations have also led to increased volatility in the market, as traders adjust their positions in response to the price movements.

The recent market developments have highlighted the importance of risk management in crypto trading. Traders who had taken on significant leverage found themselves unable to meet margin requirements, leading to forced selling and liquidations. The market's reaction to the liquidations has also highlighted the importance of understanding the underlying fundamentals of the assets being traded, as well as the risks associated with leveraged trading. As the crypto market continues to evolve, it is important for traders to remain vigilant and to manage their risk accordingly.