Bitcoin Surge to $118,108 Triggers $1.11 Billion in Short Liquidations

Bitcoin's recent surge to an all-time high of over $118,000 triggered a massive wave of liquidations, wiping out more than $1.11 billion in short contracts within a 24-hour period ending on July 11. This event represents the largest single-day liquidation of short contracts this year, surpassing the previous high set on May 10. The data from a cryptocurrency futures trading platform indicates that the value of short contracts liquidated on July 10 was significant, highlighting the market's renewed bullish momentum. In contrast, long contracts valued at nearly $120 million were liquidated during the same period, with a total of 261,866 traders being liquidated and the combined value of all forced liquidations reaching $1.24 billion. The largest single liquidation was a BTC/ USDT contract on the HTX exchange, valued at a staggering $88.55 million.

Derivatives exchanges played a significant role in the total liquidations. Bybit accounted for a substantial portion, with $291 million in contracts liquidated, of which over 98% were shorts. HTX followed with $133 million, while Gate, OKX, and Binance completed the top five with $71.8 million, $54.61 million, and $54.56 million in liquidations, respectively. Short liquidations vastly outpaced long liquidations across all major cryptocurrencies over the past 24 hours, indicating a strong upward price movement that caught traders betting against the market off guard. Bitcoin, with a 4.82% price increase, saw the most significant liquidations, with $547.59 million in short positions liquidated over 24 hours, compared to only $12.13 million in long positions. Ethereum, following a 7.04% price increase, experienced $149.09 million in 24-hour short liquidations, while long liquidations totaled $22.79 million. Solana and XRP both saw their prices rise by over 4%, with their liquidations also dominated by short positions. Dogecoin, up by 5.91%, also showed a strong skew toward short liquidations, with $4.73 million in shorts liquidated compared to $1.58 million in longs. In total, the top five cryptocurrencies saw over $720 million in short liquidations in 24 hours, while long liquidations for the same period amounted to approximately $40 million.

Bitcoin's price surge to an unprecedented high of $118,108 marked a significant 6.2% increase from the previous day. This rally has had a profound impact on the market, particularly for those who had placed short bets against the cryptocurrency. The surge wiped out over $1 billion in short positions, highlighting the volatility and risk associated with betting against Bitcoin's upward momentum. The price of Bitcoin has shown a steady increase over the past week, rising by 8.3% compared to its value seven days ago. This trend underscores the growing confidence in Bitcoin as a valuable asset, despite its inherent volatility. The market capitalization of Bitcoin now stands at $2.35 trillion, reflecting its dominance in the cryptocurrency market. The fully diluted valuation, which considers the total supply of Bitcoin, also stands at $2.35 trillion, indicating that the current market capitalization is close to its fully diluted valuation. This rally has not only boosted the value of Bitcoin but also underscored the potential risks for short sellers, who may face significant losses if the price continues to rise. The surge in Bitcoin's price has also led to increased interest in the cryptocurrency, with more investors looking to capitalize on its potential for further gains. The rally has also highlighted the importance of risk management in the cryptocurrency market, as short sellers who bet against Bitcoin's price have faced substantial losses. The price of Bitcoin has shown a steady increase over the past month, rising by 7.8% against the US Dollar. This trend underscores the growing confidence in Bitcoin as a valuable asset, despite its inherent volatility. The rally has also led to increased interest in the cryptocurrency, with more investors looking to capitalize on its potential for further gains. The surge in Bitcoin's price has also highlighted the potential risks for short sellers, who may face significant losses if the price continues to rise. The rally has not only boosted the value of Bitcoin but also underscored the importance of risk management in the cryptocurrency market.