Anticipated Bitcoin Short Squeeze Approaching? Nearly $635 million in liquidations as trader forecasts
In a significant turn of events, Bitcoin, the world's leading cryptocurrency, is showing signs of a sustained rally, with many analysts predicting prices above $100,000 for most of 2025.
Ava Montague, head of digital asset strategy at QuantumVest, has stated that the recent Bitcoin bounce no longer resembles a "dead cat bounce". The meteoric climbs of Bitcoin have historically been followed by sharp corrections, but with fewer coins available on exchanges and strong demand pressures, any dips may be shallower compared to past cycles.
This optimistic outlook is echoed by various institutions. Bitcoin has reclaimed both the 50-day and 200-day moving averages, a strong technical indicator, and has posted four consecutive weekly gains. The sudden upward move has fueled talk of a possible short squeeze that could catapult Bitcoin to $100,000 sooner than expected.
Latest forecasts for Bitcoin reaching $100,000 in 2025 generally show strong bullish sentiment. Analyst Mark Colburn predicts that if this trend continues, $100K could be reached by summer. LongForecast.com and Bitget align on a gradual upward trend targeting mid- to high-$110,000s in mid-to-late 2025. Citi Bank’s analysts are notably optimistic for the broader 2025 period, forecasting Bitcoin could reach between $135,000 and $199,000 by year-end.
However, it's important to note that risks remain that could lead to temporary dips below that mark. Some bearish scenarios point to risks of Bitcoin falling below $100,000 as early as September 2025 if ETF inflows slow or if institutional investors start pulling out, especially amid broader market corrections influencing cryptocurrency prices correlated with the S&P 500.
The broader macroeconomic environment has played a pivotal role in the recent Bitcoin bounce, with inflation cooling and the Fed signaling a potential rate cut later this year. The sudden surge has fueled speculation that the long-standing bear market may finally be over. If the momentum holds, 2025 could mark not just a recovery, but a revolution, in how the world views digital value.
The current price action has broken through technical ceilings that many believed would take months to overcome. Bitcoin surged past critical resistance levels near $72,000. The combination of historic liquidations, renewed bullish sentiment, and macro alignment has Bitcoin bulls confidently asking if $100K is finally in play.
The liquidation event marks one of the largest of the year, with over $635 million in Bitcoin positions liquidated in a 24-hour period. Social media buzz, combined with rising trading volumes, could provide the momentum needed for a sustained rally.
Bitcoin is outperforming both equities and gold year-to-date, benefiting from its hybrid identity as part safe haven, part growth asset. If the recent trends continue, 2025 could indeed be a groundbreaking year for Bitcoin and the broader cryptocurrency market.
[1] - CoinDesk [2] - Bloomberg [3] - Business Insider [4] - Forbes
With the ongoing bullish sentiment surrounding Bitcoin, several analysts are exploring opportunities in digital asset finance and investing, seeing the potential for prices above $100,000 in 2025. For instance, Mark Colburn predicts that this trajectory could culminate in reaching $100K as early as summer. This surge in Bitcoin prices and its outperformance over both equities and gold has sparked interest in how technology will influence the broader cryptocurrency market in the coming years.
