Bitcoin Reaches $116,000 Milestone; Short Sellers Take $1B Hit

Bitcoin Surges to Record $116,000, Wiping Out Nearly $1B in Shorts as Market Eyes Further Gains

Bitcoin roared to a new all-time high above $116,000 on Thursday, blasting through its previous resistance around $113,800 and doubling its price over the past year.

The world’s largest cryptocurrency briefly touched $115,469 during the U.S. trading session, gaining 4.3% in 24 hours, according to CoinDesk data. A year ago, bitcoin traded at $57,899, making this rally particularly striking given the volatility seen throughout the past twelve months.

Now, analysts and traders are debating whether bitcoin can sustain this upward momentum toward $120,000—or if this week’s spike might fizzle out.

Shorts Suffer Nearly $1 Billion in Losses

— Krisztian Sandor, CoinDesk Markets Reporter (22:40 UTC)

Thursday’s surge in bitcoin prices forced nearly $950 million worth of short positions to liquidate—the biggest daily figure of the year so far, according to CoinGlass. Short sellers, who profit from price declines, found themselves squeezed as BTC pushed higher.

Prediction Markets Target $140,000

— Aoyon Ashraf, Head of Americas (22:28 UTC)

On Kalshi, the crypto prediction market, traders are increasingly betting bitcoin could hit $141,000 by year-end.

Gerry O’Shea, head of global market insights at Hashdex, echoed that optimism:

“Despite macroeconomic uncertainties, we’re confident the bull market isn’t over. Institutional platforms and broader access to bitcoin could push prices past $140,000 this year.”

MicroStrategy’s Massive Bitcoin Stash Pays Off

— Aoyon Ashraf, Nikhilesh De (22:05 UTC)

Michael Saylor, executive chairman of MicroStrategy, celebrated bitcoin’s surge, quipping:

“The halls of eternity echo with the cries of those who sold their Bitcoin.”

MicroStrategy has amassed 597,325 BTC since 2020, effectively becoming a giant bitcoin treasury before U.S. bitcoin ETFs arrived. At Thursday’s record prices, its holdings are valued at over $69.29 billion.

Echoes of 2017, But a Changed Market

— Nikhilesh De, CoinDesk Managing Editor for Global Policy & Regulation (22:05 UTC)

Bitcoin’s explosive rally brought back memories of December 2017, when the price first soared near $20,000. However, the crypto landscape today in July 2025 looks quite different:

Higher interest rates
Much more capital invested in crypto
Greater institutional involvement
A larger, more diverse investor base

So while prices are rocketing again, the forces driving this rally are far more institutional and mature than in the past.

Bullish Eyes on $120,000

— Aoyon Ashraf, Head of Americas (21:42 UTC)

Some market observers see further upside for bitcoin. Ryan Gorman, chief strategy officer at Uranium Digital, cited institutional treasury buying and pro-crypto sentiment from President Trump and the administration’s upcoming “Crypto Week” in Washington, D.C.:

“Momentum is growing across all sectors. The combination of bullish options positioning and thin summer trading volumes could push bitcoin to $120,000 before next week ends.”

Fresh High on Coinbase

— Aoyon Ashraf, Head of Americas (21:20 UTC)

Bitcoin surged as high as $116,221 on Coinbase, reaching new records across several major exchanges. It’s another example of how quickly crypto markets can accelerate in either direction.

Policy Moves and Dollar Weakness Fuel Rally

— Aoyon Ashraf, Head of Americas (20:20 UTC)

Part of bitcoin’s rise might be tied to speculation around U.S. monetary policy. According to The Kobeissi Letter, a proposed 3% cut in the federal funds rate—as floated by Trump—could save the government up to $2.5 trillion over five years but might also stoke inflation and weaken the dollar.

Adding further intrigue, rumors are swirling that Trump could try to replace Fed Chair Jerome Powell ahead of his term’s end in 2026, potentially expediting rate cuts and driving investors into alternative assets like bitcoin.

Calm in Derivatives Despite Rally

— Krisztian Sandor, CoinDesk Markets Reporter (20:08 UTC)

Even as bitcoin hit new highs, funding rates for perpetual futures stayed mostly neutral, suggesting speculative excess hasn’t yet taken hold. As Charlie Morris of ByteTree observed:

“Crypto feels quiet. But quiet bulls are the best bulls.”

Altcoins See Modest Moves

— Tom Carreras, CoinDesk Markets Reporter (19:50 UTC)

Altcoins have been relatively steady compared to bitcoin’s fireworks. However, a few standouts among the top 50 coins included:

SUI up 12.4%
PEPE up 8.6%
DOGE up 6.3%

Meanwhile, the CoinDesk 20 Index climbed 3.2%.

Options Data Could Fuel Further Gains

— Omkar Godbole, CoinDesk Co-Managing Editor for Markets (19:45 UTC)

Bitcoin is now trading in a “negative dealer gamma zone” between $112,000 and $120,000, per Deribit options data tracked by Amberdata. In this range, market makers often need to buy more BTC as prices rise, which could accelerate volatility on the way up.

Dollar Weakness Behind Record Highs?

— Nikhilesh De, CoinDesk Managing Editor for Global Policy & Regulation (19:20 UTC)

Some analysts say bitcoin’s new high may be more about dollar weakness than pure crypto strength. For instance, BTC/EUR remains below its all-time peak from January. As one observer commented:

“Bitcoin’s new dollar ATH partly reflects the dollar’s devaluation.”

Crypto Stocks Surge

— Helene Braun, CoinDesk Markets Reporter (19:12 UTC)

Crypto-linked equities also joined the rally:

Robinhood (HOOD) and Coinbase (COIN) rose more than 3%.
Mining firms like Hut 8, Bitfarms, and HIVE Digital gained over 4%.
Newly public stablecoin issuer Circle (CRCL) edged up by 0.4%.

New Market Cycle, New Players

— James Van Straten, CoinDesk Bitcoin Analyst (18:55 UTC)

Unlike the leverage-fueled rally of 2021, this cycle is characterized by new buyers like corporate treasuries and shifting U.S. policy dynamics. Yet technical signals remain mixed:

The daily RSI shows bearish divergence.
Trading volumes have slipped since earlier peaks.
BTC remains below all-time highs in EUR and GBP terms, suggesting dollar weakness is part of the picture.

Despite lingering caution from trading desks, some remember how skeptical many were when bitcoin surged from $30,000 to $70,000 during its previous bull run.

With bitcoin hovering around $116,000, the crypto world now waits to see whether the rally will extend toward $120,000—or whether a pullback looms on the horizon.

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