Article
Bitcoin Smashes $118K Barrier as ETF Inflows Surge and Short Sellers Face $1.25B Blow
Summary
Bitcoin hits $118K for the first time, driven by ETF inflows and short liquidations totaling $1.25B. Regulatory clarity and institutional interest fuel the rally, with Ether also climbing past $3K.
Bitcoin hit all-time highs, breaking past $118,000 for the first time as record-level inflows into spot Bitcoin ETFs and heightened institutional adoption drove the asset. The rally marks a watershed event in the cryptocurrency space with Bitcoin being up over 25% so far this year and outpacing traditional assets like the S&P 500.
The frenzy has seen enormous short liquidations, with investors losing roughly $1.25 billion in the past 24 hours alone. The resulting wave of forced buybacks further boosted Bitcoin's rally, pushing prices to new highs.
Joining the rally is a favorable macro backdrop, including a weakening U.S. dollar and increased regulatory clarity. Recent policy to legalize stablecoins has boosted investor confidence, and political support for digital assets keeps building.
The second-largest cryptocurrency, Ether, has also bounced back, going above the $3,000 level. Analysts say the broader crypto universe is heading into a new age of maturity, driven by the availability of ETFs and strategic corporate treasury investment.
As Bitcoin continues to find its place as a digital reserve asset, market watchmen are eyeing the next psychological hurdle of $120,000. How long this momentum will last will depend on macroeconomic shifts and continued institutional demand.