Bitcoin Surges 10% to $118,800, Liquidating $1.25 Billion in Shorts

Bitcoin's summer rally intensified in the early hours of 11 July, as the leading cryptocurrency surged past $118,000, reaching exchange highs that exceeded $118,800. This sudden spike resulted in the liquidation of an estimated $1.25 billion in short positions within a single trading day, according to CoinGlass figures.

Charles Edwards, the founder of Capriole Investments, commented on the breakout via X, stating, “New all-time highs beget new ATHs. It’s usually unwise to ignore a major breakout like this, until invalidated.” He emphasized that corporate treasury demand has grown significantly, with numerous new companies entering the market in recent months. Edwards' base-case projection suggests a further 50–70 percent advance over the next six months, potentially reaching $170,000–$196,000.

Edwards' focus on treasuries is supported by data showing that public companies added a record 159,107 BTC in Q2, pushing aggregate corporate holdings above 847,000 BTC, or about four percent of the maximum supply. Corporate Bitcoin acquisitions have even outpaced ETF net inflows.

Matthew Sigel, head of digital-asset research at VanEck, provided a broader macro and policy perspective on Bitcoin’s trajectory. He noted that persistent US debt and deficit problems, demographic tailwinds, a weakening dollar, growing momentum around Fed rate cuts, and the potential for a new Fed chair next year all contribute to Bitcoin's upward trajectory. Sigel also highlighted the upcoming “Crypto Week” on Capitol Hill, where stablecoin legislation is expected to be a key focus. These developments, he argues, make $180,000 “very much in play for 2025.”

Lawmakers have also expressed a sense of urgency. A press statement from the House Financial Services Committee confirms that the week of 14 July will be dedicated to advancing the CLARITY Act, the Anti-CBDC Surveillance State Act, and the GENIUS Act. Passage of these bills would establish the first comprehensive federal framework for stablecoins and market structure, a change that could “unlock wide-open capital markets” for the sector.

Spot Bitcoin ETFs have seen significant activity, with net inflows into BlackRock’s iShares fund pushing its holdings past 700,000 BTC in the 18 months since its launch. However, both Edwards and Sigel note that treasury companies have become the marginal buyer in 2025, creating what Edwards calls a “cap-raising flywheel.” This dynamic allows firms to showcase outperforming share prices when courting investors.

The rally is supported by a favorable macro backdrop. Federal Reserve Governor Christopher Waller indicated he is “open to cutting the policy rate in July,” arguing that current settings are “too tight” given waning inflation pressures. Meanwhile, US President Donald Trump has continued his attacks on Fed chair Jerome Powell, demanding immediate rate cuts. Trump’s tariff escalation also seems to be fading, further supporting the Bitcoin rally.

Despite the euphoric headlines, technicians warn that momentum must sustain above $110,000 to avoid a failed-breakout pattern. Edwards concludes, “This theory would be weakened with closes below $110K and invalidated below $105K.” At the time of press, BTC was trading at $117,854.