Bitcoin Smashes All-Time Highs as $1B in Shorts Get Liquidated: $130k Next?

Key Insights:

• Bitcoin recently registered a new all-time high, dragging the market up and causing $1 billion in liquidations.
• According to analysts, prices can trek further upwards to $130k before any strong profit taking occurs.
• Bitcoin is treading on thin ice, and any macroeconomic shocks can flip the script completely.

The crypto market is ablaze once again and this time, it’s the bears who are feeling the heat. 

Over $1 billion worth of short positions were wiped out in just 24 hours as Bitcoin surged past multiple all-time highs. This move has triggered a massive short squeeze and is now sending ripples through the market.

Here’s a breakdown of what happened, what’s driving this rally and where Bitcoin might be headed next.

Shorts Get Crushed as Bitcoin Rockets Past $116K

The market recently recorded one of the largest liquidation events this year, where roughly $1.01 billion in crypto short positions were liquidated as Bitcoin and Ethereum prices exploded. 

According to data from CoinGlass, over 232,000 traders were affected by the surge. This is with Bitcoin short positions accounting for around $570 million of that total and Ethereum shorts taking a hit of $206.9 million.

To put it simply, traders who bet on the market going down were caught off-guard. In contrast, long positions barely flinched, with only about $20 million liquidated during the same time.

Bitcoin in particular, recorded two back-to-back record highs and climbed from $112,000 on Wednesday to $116,500 on Thursday. Ethereum on the other hand, rose to $2,990 with the market’s momentum pushing total crypto market capitalization up by 4.4% to  $3.63 trillion.

Will Bitcoin Keep Climbing?

Earlier in the week, not everyone was convinced that Bitcoin could break its previous highs. 

Bitfinex analysts initially showed concern over Bitcoin’s “lack of follow-through strength”. They also noted that bulls might struggle to push prices further without strong signals on the macroeconomic front.

At that time, Bitcoin was trading around $108,500, and caution was in the air. However, not all analysts were hesitant. Michaël van de Poppe, founder of MN Trading Capital was one of the first to predict a breakout to new all-time highs by early July. 

The inevitable breakout to an ATH on #Bitcoin might even happen during the upcoming week.

Such a bullish setup. pic.twitter.com/VQfT2A2GSR

— Michaël van de Poppe (@CryptoMichNL) June 28, 2025

He turned out to be right, as the market is now almost completely green. The question now is: How much higher can Bitcoin go?

All Eyes on $130K

Market analysts believe Bitcoin still has room to run before a major pullback. Based on on-chain data from CryptoQuant, “accumulator” addresses, or wallets that consistently add BTC over time, have ramped up their buying lately. 

These addresses now hold over 248,000 BTC, up 71% from just a few weeks ago. This isn’t just speculative activity. 

A jump of $4.4 billion in Bitcoin’s realized cap has also confirmed that real capital is flowing into the asset.

Even more telling is the Market Value to Realized Value (MVRV) ratio, which according to Axel Adler Jr., is yet to hit the 2.75 sell-off zone. At current levels, this means Bitcoin may continue rising until it reaches around $130,900.

What Could Derail the Bitcoin Rally?

Even with the bulls in control, it’s important to consider the risks. Over $2.1 billion in long positions are currently vulnerable if Bitcoin retraces back to the $112,000 level. 

This means that any sudden macroeconomic shock, regulatory development or unexpected market downturn could trigger another round of liquidations. This time, the bulls might suffer the most.

Overall, the past 24 hours have reminded the market just how quickly sentiment can shift. What started as an attempt to break all-time highs has turned into a powerful rally, which is now leaving short-sellers reeling.