Predicted Bitcoin Short Squeeze Approaching: $635 Million in Liquidations as Traders Anticipate $100K Price Surge
In recent weeks, the cryptocurrency market, led by Bitcoin, has experienced significant liquidation events. These events, marked by substantial losses in leveraged positions, particularly in long trades, have shaken the market.
On July 15, 2025, Bitcoin faced $140.06 million in long liquidations, contributing to a total of $731.93 million in trader losses across major cryptocurrencies[1]. A week later, on July 25, 2025, over $155 million in long positions were liquidated as Bitcoin dropped below $115,000[2]. These liquidations were often triggered by rapid price movements and the overheating of futures markets, exacerbated by investor behavior such as FOMO (fear-of-missing-out) and panic selling[1][3].
Despite these setbacks, Bitcoin's resilience and the broader market trends suggest a bullish outlook for the future. The move was attributed to a combination of declining macroeconomic pressure, a weakening dollar, dovish tones from the Federal Reserve, and renewed institutional inflows into spot ETFs[4].
If the momentum holds, 2025 could mark not just a recovery, but a revolution, in how the world views digital value. Strong demand from institutional investors for crypto exposure through ETFs and custody platforms is being observed[4]. Google Trends data shows that searches for "buy Bitcoin" and "Bitcoin short squeeze" are at their highest levels since late 2021, indicating retail traders are slowly creeping back in[5].
Prominent trader and crypto analyst Mark Colburn predicted that Bitcoin could reach $100,000 by summer[6]. Ava Montague, head of digital asset strategy at QuantumVest, stated that the recent Bitcoin bounce is not a dead cat bounce, but rather a sign of meaningful on-chain accumulation, increased institutional allocation, and a macro environment that favors hard assets[6].
The combination of historic liquidations, renewed bullish sentiment, and macro alignment has Bitcoin bulls confidently questioning if $100K is finally in play. Bitcoin is outperforming both equities and gold year-to-date[5]. Altcoins are beginning to catch the bullish spillover from Bitcoin, with Ethereum rebounding above $4,000, Solana continuing to gain institutional support, and layer-2 tokens like Arbitrum and Optimism rallying on improved scaling solutions and user adoption[5].
Rapidly drying BTC reserves on exchanges are seen as a bullish long-term indicator[5]. Renewed instability in traditional financial markets has led money managers to diversify into alternative assets, with crypto hedge funds reporting double-digit inflows over the past two weeks[5].
In conclusion, while Bitcoin has faced significant liquidation events, its resilience and the broader market trends suggest a bullish outlook for the future, with potential for growth driven by institutional investment and market stability.
[1] Yahoo Finance [2] Cointelegraph [3] Forbes [4] Business Insider [5] CNBC [6] Bloomberg
- In light of the increasing interest from institutional investors and the resilience shown by Bitcoin after significant liquidation events, some analysts are predicting investing in Bitcoin could reach $100,000 by the end of the summer.
- As the crypto market continues to recover and stabilize, technology is playing a crucial role in attracting institutional investors, with Google Trends data showing a rise in searches related to buying Bitcoin and Bitcoin short squeezes.
