Bitcoin Nears $118,000, Triggers Over $1 Billion in Short Liquidations in 2025 Record Move
July 11, 2025 — Bitcoin surged past the $118,000 mark this week, setting fresh all-time highs and sparking the largest short squeeze seen so far in 2025. The dramatic price rally resulted in the liquidation of more than $1.13 billion worth of leveraged crypto positions within a 24-hour window, with over $1.01 billion of these liquidations hitting short sellers who had bet on Bitcoin’s price decline.
Massive Liquidation Event Hits Crypto Traders
According to aggregated data, approximately 237,000 traders were forced out of their positions during this liquidation event. Bitcoin futures led the charge, accounting for $590 million in liquidations, followed by Ethereum futures which recorded $241 million. The majority of the damage was concentrated on major derivatives trading platforms, with Bybit and HTX absorbing the bulk of losses. Bybit alone saw $461 million liquidated, over 93% of which came from short positions, while Binance and HTX recorded $204 million and $193 million respectively.
The largest single liquidation was an $88.5 million BTC-USDT short position on HTX, underscoring how aggressively investors had been wagering against Bitcoin’s upward momentum. Short liquidations occur when traders borrow funds to bet against asset prices and are forcibly closed when the price moves contrary to their expectations. Such forced closures tend to accelerate price rallies by pushing even more buy pressure into the market.
Renewed Optimism Amid Regulatory and Market Signals
This surge in Bitcoin’s price and the resulting wipeout of short sellers have been driven by a renewed wave of optimism across the crypto markets. Analysts attribute the rally in part to positive policy signals from regulators in the U.S. as well as strength in traditional equity markets. Following Bitcoin’s milestone, several other leading cryptocurrencies also posted gains — XRP climbed by more than 8%, Ether rose over 7%, and Dogecoin and Solana both advanced roughly 5%. These moves reflect diverse narratives underpinning bullish sentiment across digital assets.
Bitcoin futures open interest also jumped by $2 billion in just four hours during the rally, with a long-to-short ratio now slightly favoring bullish bets at 52%. This pattern suggests that traders are increasingly positioning for further price appreciation rather than expecting a reversal.
Market Data Snapshot (July 11, 2025)
- Bitcoin (BTC): $117,987.11 (+6.40%)
- Ethereum (ETH): $2,976.47 (+7.39%)
- XRP: $2.8943 (+8.03%)
- Binance Coin (BNB): $690.61 (+2.57%)
- Solana (SOL): $164.29 (+3.99%)
- Dogecoin (DOGE): $0.2068 (+10.27%)
- Cardano (ADA): $0.7642 (+16.86%)
What This Means for Crypto Traders
The unprecedented liquidation event highlights the risks involved with leveraged short positions in highly volatile cryptocurrency markets. Traders betting against a rally can face significant losses when momentum shifts. On the other hand, the event also illustrates growing institutional interest and confidence in Bitcoin’s price trajectory as open interest and bullish positioning rise.
As Bitcoin continues to break new ground, market watchers will be closely monitoring regulatory developments, macroeconomic trends, and on-chain data to gauge the sustainability of this rally and the potential for further price breakthroughs.
Reported by Shaurya Malwa, CoinDesk Crypto Derivatives Analyst.
Article updated July 11, 2025.