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Once again, Bitcoin has proven itself by smashing through resistance levels like wet cardboard. The digital gold soared past $122,000 and set a new record high. The chart indicates that buyers are accelerating momentum with almost no overhead resistance.
Now officially surpassing Amazon to become one of the top five assets globally, Bitcoin's valuation has surpassed $2.04 trillion. However, the spectacle is not limited to price action. Across the derivatives markets, a huge chain reaction of liquidations has occurred. Leveraged positions worth almost $732 million were destroyed in the past day.
Only $116 million of the damage was incurred by longs, whereas shorts suffered the most, with over $600 million in short liquidations alone. The largest liquidation was a vicious Binance position worth $98 million in BTC-USDT. The relentless advance of Bitcoin has systematically dismantled bears who overplayed their hand. The carnage is highlighted by exchange liquidation data.
Bybit and Binance took the brunt of it together, making up over half of all liquidations. Ongoing margin calls are visible in real-time feeds for both Bitcoin and Ethereum pairs. This is exactly the situation that traders forewarned about last week: a series of forced buybacks that would push Bitcoin higher. The next course of action will be shaped by macro factors. The CPI data is released on Tuesday, and the PPI data is released on Wednesday.
The Fed is faced with an impossible decision: either tighten into stagflation or tolerate high prices if inflation stays sticky while the labor market weakens. Risky assets may become more volatile.
At the same time, the U.S. GENIUS Act is one of three historic crypto bills that Congress will consider from July 14-18. A major catalyst, according to major market participants, is this legislative cluster. Before these decisions are made, some of the recent rally may be a preemptive action.
Meanwhile, ETH has broken through $2,800, which is usually a sign of a huge rally toward $4,000. Additionally, because ETH is currently well into negative gamma territory, options dealers are compelled to hedge by purchasing rather than selling. This alignment frequently increases volatility and quickens upward movements.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team