Bitcoin price surged to an unprecedented all-time high, breaking through the $112,000 barrier for the first time on Wednesday after rising 5.95% during the past week. Consequently, the oldest digital asset has nearly doubled over the past year, climbing from $57,899 a year ago to its current record level. Thursday's explosive movement upward liquidated over $950 million in leveraged short trading positions across all crypto assets, marking the largest single-day wipeout this year.

Meanwhile, the current bitcoin price in USD reached an impressive high of $112,052.24, surpassing its previous May 22 record of $111,999. This remarkable achievement has contributed to the total crypto market capitalization recapturing $3.47 trillion, a level not seen since June 2025. Furthermore, investors studying the bitcoin price chart have been anticipating new records in the second half of the year, primarily due to accelerated bitcoin purchases by corporate treasuries and Congress moving closer to passing crypto legislation. With this momentum building, many analysts are revising their bitcoin price predictions upward, with $120,000 now appearing within reach.

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Bitcoin breaks $112K as shorts face $1B liquidation

The sudden surge in Bitcoin's value beyond $112,000 triggered an unprecedented market reaction as short traders faced severe consequences. The digital asset's rally demolished bearish positions, resulting in over $1.3 billion in short liquidations across the cryptocurrency market in just 24 hours. This massive wipeout affected approximately 280,000 traders, creating a chain reaction that further accelerated Bitcoin's upward momentum.

How leveraged positions triggered a cascade of liquidations

The liquidation event showcased a textbook example of how leveraged trading can amplify market movements. Short sellers, who had borrowed capital to bet against rising prices, found themselves trapped when Bitcoin broke through resistance levels. As the cryptocurrency's value increased, these positions were automatically closed out, forcing traders to buy back at higher prices.

This reflexive buying added additional upward pressure, creating a self-reinforcing cycle. Notably, a single Bitcoin-USDT short position worth $88.55 million on HTX exchange became the largest individual casualty. The scale of these forced closures demonstrates how aggressively traders had positioned against Bitcoin's rally.

Additionally, the liquidation cascade accelerated when Bitcoin decisively breached its previous all-time high above $112,000, wiping out approximately $340 million in positions within hours. This triggered a domino effect where each liquidation fueled further price increases, compelling more short positions to close.

CoinGlass data reveals largest short wipeout of the year

According to CoinGlass data, this event represents the largest short-side wipeout of 2025. The liquidations were overwhelmingly skewed toward short positions, accounting for nearly 90% of all liquidated trades. Bitcoin futures dominated the liquidation statistics with $590 million in forced closures, followed by Ethereum futures at $241 million.

The damage was primarily absorbed by major exchanges. Bybit recorded $461 million in total liquidations with over 93% on the short side. Binance reported $204 million in liquidations while HTX experienced $193 million. The concentrated nature of these liquidations across exchanges highlights the market-wide impact of Bitcoin's surge.

In comparison to previous events, this liquidation spike dwarfs recent market corrections. Although not reaching the scale of February's $2.24 billion liquidation event triggered by trade war concerns, the current wipeout clearly demonstrates the risks of betting against Bitcoin's upward trajectory.

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What macro factors are fueling Bitcoin's rally?

Several macroeconomic forces have converged to propel the current bitcoin price beyond previous resistance levels. Beyond the short squeeze dynamics, broader economic and political factors have created an environment particularly favorable for cryptocurrency appreciation.

Trump's tariff policy and its impact on risk assets

Former President Trump's recent announcement of potential new tariffs on Chinese imports has significantly shifted market sentiment. His proposed 60% tariff on Chinese goods has prompted investors to reassess their portfolios, with many turning to Bitcoin as a hedge against potential market disruptions. This policy stance has created uncertainty in traditional markets, leading to capital flight toward alternative assets.

Moreover, the anticipation of trade tensions has weakened growth forecasts for export-dependent economies, pushing investors toward uncorrelated assets like Bitcoin. Historical data shows that previous trade disputes in 2018-2019 coincided with periods of Bitcoin outperformance relative to traditional equity markets.

Federal Reserve rate cut speculation and dollar weakness

Recent economic indicators pointing to cooling inflation have intensified expectations for Federal Reserve rate cuts. The market is currently pricing in at least three rate reductions before year-end, which has already begun weakening the US dollar against major currencies. This monetary policy shift creates favorable conditions for Bitcoin, as lower interest rates reduce the opportunity cost of holding non-yielding assets.

Additionally, dollar weakness typically correlates with Bitcoin strength, as investors seek alternatives to preserve purchasing power. The bitcoin price chart shows consistent upward momentum since the first hints of potential rate cuts emerged in Federal Reserve communications last month.

Global inflation fears and safe-haven demand

Despite recent moderation in US inflation figures, global inflationary pressures remain a concern in many economies. This persistent threat to purchasing power has renewed Bitcoin's appeal as a potential inflation hedge. Institutional investors have increasingly cited inflation protection as a primary motivation for bitcoin purchases.

Furthermore, ongoing geopolitical tensions have heightened demand for assets perceived as independent from government control. This safe-haven narrative has particularly resonated with corporate treasuries seeking to diversify reserves beyond traditional instruments like government bonds and cash equivalents.

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How institutional buying is reshaping the market

Institutional investment has emerged as a powerful force driving the current bitcoin price to unprecedented levels. The landscape of crypto ownership is undergoing a fundamental transformation as corporate treasuries and investment vehicles compete for bitcoin exposure.

Corporate treasuries accumulate Bitcoin at record pace

Corporate bitcoin holdings have reached historic highs, with 255 companies now collectively holding approximately 3.47 million BTC, representing nearly 3.97% of the total supply. This institutional presence continues to strengthen, with corporate treasuries outpacing ETFs in bitcoin acquisition for three consecutive quarters. Indeed, public companies acquired roughly 131,000 coins in Q2 2025 alone, expanding their bitcoin holdings by an impressive 18%. First and foremost, this aggressive accumulation strategy reflects growing confidence in bitcoin as a treasury asset despite price volatility, with quarterly corporate purchases reaching their highest levels in history.

ETF inflows vs direct purchases: who's buying more?

Exchange-traded funds remain formidable players, currently holding over 1.4 million bitcoin (approximately 6.8% of total supply). However, ETF growth has slowed to 8% (about 111,000 BTC) in Q2. Research indicates a strong correlation between ETF inflows and bitcoin price movements, with ETF activity explaining roughly 80% of bitcoin's recent return variance. As can be seen from market data, direct corporate purchases are currently outpacing ETF accumulation, suggesting a shift in institutional strategy. Subsequently, this changing dynamic hints at diversifying approaches to bitcoin exposure across the institutional landscape.

Michael Saylor's $69B bet and the rise of treasury whales

Strategy (formerly MicroStrategy) stands as the undisputed leader in corporate bitcoin holdings, controlling over 597,000 BTC valued at approximately $62 billion. The company's innovative capital raising approach, including $7.3 billion in convertible debt issuance, has established a template other firms now follow. This bitcoin treasury model has attracted imitators including Marathon Digital, Twenty One Capital, and Metaplanet. For this reason, bitcoin "treasury whales" now control significant portions of the circulating supply, with Strategy alone holding over 1% of all bitcoin. Evidently, the market dynamics have shifted as these institutional players typically behave as long-term holders rather than active traders.

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Bitcoin Price Predictions for the End of 2025

As Bitcoin shatters its previous all-time high and surges beyond $112,000, institutional investors and analysts are already looking ahead to what the next two years may bring. With macroeconomic factors aligning in Bitcoin's favor and corporate accumulation at record levels, major players in finance have begun to update their long-term projections. Here’s what leading firms and experts are predicting for Bitcoin's price by the end of 2025.

End of 2025: $200,000 to $500,000

Following Bitcoin’s rally above $112,000 in July, numerous analysts have revised their year-end 2025 targets upward, citing sustained institutional demand, favorable monetary policy shifts, and supply-side constraints post-halving.

1. Standard Chartered: $200,000

In April 2024, Standard Chartered reiterated its $200,000 year-end 2025 Bitcoin price target. The British bank expects increasing demand from U.S. spot Bitcoin ETFs and high-net-worth investors, along with reduced miner sell pressure following the April 2024 halving.

2. Bernstein: $200,000

Bernstein analysts have reiterated their prediction that Bitcoin will reach $200,000 by the end of 2025. This forecast is based on several factors, including Significant ETF Inflows, Accelerated Institutional Adoption, Corporate Treasury Adoption, Pro-Crypto Regulatory Environment and Crypto & AI Convergence.

3. Chamath Palihapitiya: $500,000

Billionaire venture capitalist Chamath Palihapitiya, an early Bitcoin investor, has made an even more aggressive prediction, foreseeing Bitcoin hitting $500,000 by October 2025. He attributes this to Bitcoin's halving event and its increasing adoption as a reserve asset.

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Bitcoin $BTC Price Discovery

Bitcoin has entered a fresh phase of price discovery, surging to a new all-time high of $118,856 and currently trading at $117,519. The breakout smashed through resistance, triggering $1.3 billion in short liquidations and reaffirming Bitcoin’s role as a macro asset in a changing global economy.

Unlike past cycles driven by retail hype, this rally is institution-led. Corporate treasuries now hold 3.47 million BTC, with Strategy (formerly MicroStrategy) alone holding 597,000 BTC — worth over $70 billion at current prices. This shift from speculation to strategic accumulation is tightening supply and amplifying upward pressure.

Macroeconomic forces are also fueling demand. Trump’s proposed tariffs, expectations of Fed rate cuts, and global inflation concerns have made Bitcoin an increasingly attractive hedge. With ETF inflows slowing and direct corporate buying accelerating, demand is becoming more concentrated and less price-sensitive.

Technically, Bitcoin has broken cleanly out of the dealer gamma zone between $109K and $113K, clearing the path toward $120,000. While RSI divergence and falling volumes suggested caution earlier in the week, price action has invalidated near-term bearish signals.

Bottom line: this breakout reflects more than momentum — it signals structural demand. With supply locked by long-term holders and institutional buying intensifying, Bitcoin’s price discovery phase is far from over.

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