Bitcoin Nears $118K, Triggering Over $1 Billion in Short Liquidations in 2025’s Largest Crypto Sell-off
Bitcoin (BTC) surged past the $118,000 mark this week, sparking the biggest short squeeze seen this year in the cryptocurrency markets. The rapid price movement triggered the liquidation of more than $1.13 billion in crypto positions within 24 hours, with short sellers bearing the brunt of the losses, reflecting a dramatic shift in market sentiment and momentum.
Massive Liquidations Shake Crypto Traders
Approximately $1.01 billion of the liquidated positions came from traders betting against Bitcoin’s rally, marking the largest wipeout of bearish (short) positions in 2025. In total, around 237,000 traders were liquidated during this market frenzy.
The largest single liquidation was an $88.5 million short on a BTC-USDT futures contract on the exchange HTX. This event highlights just how aggressively many traders had positioned themselves expecting Bitcoin prices to fall, only to be caught off guard by the price surge.
Bitcoin and Ether Futures Lead the Sell-Off
Bitcoin futures were at the forefront of the liquidations, accounting for $590 million of the total, while ether (ETH) futures contributed another $241 million in liquidated positions. This liquidation cascade is a reflexive process: as short sellers are forced out of their positions due to rising prices, their forced buying further accelerates upward momentum, driving prices even higher.
Exchanges Most Impacted: Bybit and HTX
The bulk of the liquidations were concentrated on the major derivatives exchanges Bybit and HTX. Bybit experienced liquidations totaling $461 million, with more than 93% of those from short positions. Binance and HTX followed with $204 million and $193 million respectively in liquidations.
Market Sentiment Turns Bullish
Open interest on Bitcoin futures increased by $2 billion in just four hours, with the long-to-short ratio shifting slightly in favor of bullish bets at 52%. This suggests traders are increasingly optimistic about Bitcoin’s price prospects, betting on further gains.
The rally has not been limited to Bitcoin alone. Other major cryptocurrencies showed significant gains, with XRP up over 7%, and Dogecoin (DOGE), Solana (SOL), and Ether (ETH) also posting advances of up to 5%. The broad market optimism is bolstered by renewed positive sentiment around regulatory developments in the United States and strong performances in equity markets.
What This Means Going Forward
The dramatic liquidation event underscores how quickly market dynamics can shift in the volatile crypto space, especially in leveraged products like futures. Traders betting heavily against the market can face enormous losses if prices move against them, often exacerbating price moves through forced liquidations.
Bitcoin’s leap to new all-time highs amid such significant forced buying pressure signals a robust bullish trend, at least in the short term. Market participants will be watching closely to see if Bitcoin can sustain these levels and if other cryptocurrencies will follow suit.
Prices as of July 11, 2025:
- Bitcoin (BTC): $117,819.25 (slightly off the $118K peak)
- Ether (ETH): $2,966.64 (-1.20%)
- XRP: $2.7640 (+7.13%)
- Dogecoin (DOGE): $0.2006 (+1.72%)
- Solana (SOL): $162.39 (-0.72%)
This surge and liquidation shakeout may mark a pivotal moment as 2025’s crypto market structure shifts, attracting fresh attention from traders and investors worldwide.
Reported by Shaurya Malwa
Edited by Parikshit Mishra
Published July 11, 2025