- Bitcoin hits record high as institutional ETF demand intensifies rapidly
- Over $1 billion in short liquidations fuel Bitcoin market surge
- Weakening U.S. dollar and rising debt boost Bitcoin’s safe-haven appeal
Bitcoin’s price surged to a new record high on Friday, climbing past $118,000 amid a strong wave of institutional investment and aggressive short liquidations. The rally reflects growing investor confidence fueled by significant inflows into Bitcoin spot ETFs and rising skepticism toward traditional fiat systems.
On July 10, Bitcoin ETFs saw combined net inflows of $1.17 billion, with BlackRock’s IBIT leading the way with $448.5 million. Fidelity’s FBTC followed closely with $324.3 million, while ARK’s ARKB and Bitwise’s BITB added $268.7 million and $77.2 million, respectively.
These large-scale investments reinforced market momentum as traditional institutions deepened their involvement in crypto.
The rally was further intensified by a sharp short squeeze that triggered over $1 billion in liquidations across the market. Bitcoin alone accounted for $570 million in short positions being wiped out, pushing the price even higher as traders rushed to cover their losses.
Ethereum also experienced similar action, with $207 million in short liquidations and rising investor attention.
Also Read: Ethereum on the Brink: Massive Short Squeeze Could Trigger $3,700 Surge
ETF Demand and Option Expiry Drive Upward Pressure
On-chain data pointed to heavy accumulation by large Bitcoin holders, suggesting that institutional players are preparing for further gains. The surge came just ahead of the expiration of over 37,000 Bitcoin options valued at $4.3 billion.
These contracts had a max pain point of $108,000, and Bitcoin trading above this level added pressure on bearish traders.
Besides the technical drivers, macroeconomic conditions also played a role. The U.S. national debt is approaching $37 trillion, with lawmakers setting a new ceiling of $41.1 trillion. At the same time, the U.S. dollar has weakened despite no expected interest rate cuts, signaling investor concerns over economic stability.
Public figures also added fuel to market sentiment. Elon Musk voiced support for Bitcoin during a recent event, stating his backing for alternatives to fiat currency through the new America Party. His comment further strengthened market optimism around Bitcoin’s long-term role in the financial system.
Conclusion
Bitcoin’s price increase today is the result of strong ETF inflows, heavy short liquidations, and growing distrust in fiat systems. With institutional demand rising and market sentiment strengthening, the digital asset continues to gain ground as a preferred store of value.
Also Read: XRP Price Targets $9.6 as This Historic Pattern Flashes
