Bitcoin has shattered all previous records by surging past $112,000 for the first time on Wednesday, driven by an explosive $200 million liquidation of short positions and growing institutional appetite for risk assets. The historic milestone represents a dramatic shift in market dynamics as bearish traders face unprecedented losses whilst institutional investors continue pouring capital into the world’s largest cryptocurrency.
Bitcoin soared to another record high, driven by growing global investor demand for risk assets and a $200 million liquidation of BTC shorts near a critical overhead resistance level. The breakthrough came after weeks of consolidation around the $110,000 level, where short sellers had been building significant positions.
The price of Bitcoin hit a high of about $112,055 at 3:55 p.m. ET on Wednesday, marking a decisive break above the psychological barrier that had capped its advance for several weeks. The surge was particularly dramatic in the final hour before the record, as market momentum accelerated rapidly.
The short squeeze was unprecedented in its scale and speed. Bitcoin spiked Wednesday afternoon in the minutes leading up to the new mark as investors liquidated more than $280 million in short positions in a one-hour period, creating a cascade effect that propelled prices to new heights.
Market structure had been building towards this moment for weeks. During bitcoin’s move this week from $106,000 to $110,000, the long/short ratio fell from 1.223 in favour of longs to 0.858 in favour of shorts, indicating that bearish sentiment had reached extreme levels just before the breakout.
The institutional backdrop supporting Bitcoin’s rally remains robust. The Bitcoin ETF sector recorded a net inflow of 1,150 BTC on July 1, representing $120.94 million in value, with weekly net inflow considerably higher at 18,476 BTC, signalling sustained institutional demand throughout the recent period.
Professional analysts had been anticipating this move. Analysts said that Bitcoin could hit $115,000 by early July this year, driven by institutional demand and ETF flows. The prediction appears to be materialising as market conditions align perfectly for continued upward momentum.
The broader cryptocurrency market has benefited from Bitcoin’s strength. Bitcoin has surged to an unprecedented high of $106,881 in July 2025, fueled by growing institutional investment and the increasing adoption of Bitcoin ETFs, with institutional inflows significantly bolstering market capitalisation, pushing Bitcoin beyond the $2 trillion mark.
Looking ahead, market participants remain optimistic about further gains. Demand from financial institutions could push the price of Bitcoin as high as $200,000 per coin in 2025, according to analysts from Standard Chartered and Intellectia AI, who said institutional Bitcoin demand from exchange-traded funds continues to accelerate.
However, some caution remains warranted. Research shows ETF purchases over a 30-day window fell from 86,000 BTC on Dec. 7, 2024, to just 40,000 BTC by early July 2025, suggesting that institutional buying may be moderating even as prices reach new peaks.
The technical breakout above $112,000 eliminates significant overhead resistance and opens the door for further advances. With short sellers now largely cleared from the market and institutional interest remaining strong, Bitcoin appears well-positioned for continued gains in the coming weeks.
REFH – newshub finance
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