Bitcoin Surges 10% to $118,856, Liquidates $1 Billion in Bearish Positions

Bitcoin (BTC) has reached unprecedented heights, surging to $118,856 on Friday, marking a new record for the leading cryptocurrency. This surge has set the stage for a pivotal week ahead, with BTC bulls aiming for the $120,000 milestone. The price action has since stabilized, with BTC trading around $118,139 over the past 24 hours.

The recent rally in Bitcoin has resulted in significant liquidations, with over $1 billion in bearish positions wiped out in the past day. This liquidation wave affected over 279,000 traders as BTC hit its latest all-time high. The largest single liquidation, valued at approximately $88 million, occurred on a major exchange. Analysts attribute this move to a gradual upward trend that has been building for some time, with the latest surge driven by a combination of factors including record ETF inflows and a Congressional committee designating the upcoming week as "Crypto Week." Additionally, there are indications that China may be reconsidering its stance on digital assets, further fueling the bullish sentiment.

This week is particularly significant for the crypto industry as the US House of Representatives is set to discuss three critical crypto bills. These bills—the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act—aim to provide much-needed regulatory clarity. The GENIUS Act will allow private companies to issue stablecoins, while the Digital Asset Market Clarity Act will establish a framework for crypto regulation. The third bill, the CBDC Anti-Surveillance State Act, seeks to prevent the Federal Reserve from issuing a central bank digital currency. These discussions come at a time when ties between Washington and the crypto industry are showing signs of improvement, which could encourage more companies to adopt Bitcoin into their treasury strategies.

Investors are positioning themselves ahead of next week's legislative discussions, with analysts predicting that capital previously sidelined due to regulatory uncertainty will re-enter the market. Even if the final passage of these bills is delayed, the optics of legislative engagement could drive the market higher. This optimism is reflected in the broader crypto market, where altcoins like Ethereum (ETH), Ripple (XRP), and Solana (SOL) have also seen significant price jumps as BTC reaches new highs. Despite Bitcoin's dominance remaining steady at around 64%, the influx of fresh capital into the wider market is helping prominent altcoins gain market share.

Bitcoin's price action over the past week has been volatile, starting with a drop of 1.09% on Monday and 1.33% on Tuesday, settling at $105,740. The price recovered on Wednesday, rising nearly 3% to reclaim $108,000 and settle at $108,845. Buyers maintained control on Thursday, pushing BTC to an intraday high of $110,583 before settling at $109,637, ultimately registering an increase of 0.73%. The price lost momentum on Friday, dropping 1.41% and settling at $108,097. However, the price recovered over the weekend, registering a marginal increase on Saturday and rising almost 1% on Sunday to cross $109,000 and settle at $109,231.

The current week started with a slight drop of almost 1% to $108,273 on Monday. The price recovered on Tuesday, rising 0.62% to $108,942. Buyers retained control on Wednesday as BTC rose over 2% to cross $111,000 and settle at $111,255. Bullish sentiment intensified on Thursday, with the price rallying 3.51% to $115,159, setting a new all-time high. BTC raced past $118,000 on Friday, setting another all-time high before settling at $116,885. The current session sees BTC marginally up, with buyers eying the $120,000 level as markets head into a crucial week.