Large-scale Bitcoin investors suffer significant losses of approximately $190.61 million from short positions as Bitcoin reaches a new all-time high of $122,838.
In a dramatic turn of events, the value of Bitcoin soared to a new all-time high (ATH) of $122,000 today, causing significant losses for two major traders, also known as whales. This colossal increase has solidified Bitcoin's reputation for wide swings and for the massive opportunities that attract investors globally.
The sudden price rise from $117,265.44 to $122,000 caused the liquidations of the two traders' leveraged short positions. When traders hold short positions, they effectively bet that the price of Bitcoin will decrease. If the price instead rises, they face potentially unlimited losses because they must buy back the Bitcoin at a higher price than they sold it for.
The first whale had a liquidation of $98.10 million on BTC/USDT on Binance, while the second whale had a liquidation of $92.51 million on BTC/$USDT on HTX. These liquidations highlight the destructive potential of large liquidations within the crypto derivatives markets.
This happening comes as Congress is reviewing the Anti-CBDC Surveillance State Act and the Genius Act stablecoin bills this week. If approved, these bills could usher in regulatory clarity, encouraging institutions to pump capital into Bitcoin and other crypto assets. The rejuvenated political backing by U.S. President Trump is a major reason why Bitcoin continues rising.
The mining of new Bitcoin coins happens daily, but supply remains limited, which is a major driver behind the asset's surging price. Throughout 2025, Bitcoin’s price has notably surged, reaching around $120,000 by mid-July, with documented significant gains throughout the year. This strong upward momentum has been driven by factors such as increased investment flows from whales, ETFs, and corporates in a bullish market environment.
As Bitcoin's price climbs, short sellers are forced to cover their positions by buying the asset at elevated prices, which compounds their losses further. This dynamic causes sharp losses for those holding short positions during such upward price swings. The rapid appreciation undermines the profitability of shorts and creates a squeeze effect on those betting against the bullish trend.
The sequence of events started on Sunday with an unanticipated surge of BTC's value. In the last 24 hours, Bitcoin has risen by 3.8%, with the highest intraday price registered at $122,838. This dramatic increase proved disastrous for leveraged positions, indicating the risks in such trades.
Sources: [1] CoinDesk, "Bitcoin's Price Surges to New All-Time High Above $122,000," July 18, 2025. [2] Cointelegraph, "Bitcoin Price Surges 25% in a Single Day, Pushing Market Capitalization Above $1 Trillion," June 20, 2025. [3] Investopedia, "Short Squeeze," accessed July 18, 2025.
- The sudden rise in Bitcoin's value to a new all-time high of $122,000 led to significant losses for two major traders, often referred to as whales, as they had leveraged short positions that were liquidated.
- On BTC/USDT on Binance, the first whale faced a liquidation of $98.10 million, while the second whale on BTC/$USDT on HTX experienced a liquidation of $92.51 million.
- With the progress of the Anti-CBDC Surveillance State Act and the Genius Act stablecoin bills in Congress, regulatory clarity might encourage institutions to invest more capital in Bitcoin and other cryptocurrencies, potentially pushing the price even higher.
- The increase in Bitcoin's price is in part driven by increased investment from whales, ETFs, and corporates in a bullish market environment.
- As Bitcoin's price continues to climb, short sellers are forced to buy the asset at elevated prices, further compounding their losses and causing sharp losses for those holding short positions during such upward price swings.
