- Bitcoin’s solid upward trend suggests a potential all-time high (ATH) breakout soon.
- Short positions worth $560M liquidated as Bitcoin breaks through the $90K barrier.
- Bitcoin ETFs see $936M inflows, the largest single-day inflow since January 2025.
Bitcoin’s (BTC) price surpassed $94,000, triggering strong market movement. At the time of writing, the cryptocurrency’s trading value stands at approximately $93,700. This week’s recent market surge is driven by factors, including institutional investor participation and short position liquidations. Strong market momentum in BTC has pushed prices to test key critical points, with a significant target area lying between $93,000 and $95,000.
Bitcoin’s Recent Price Surge and Market Sentiment Shift
Bitcoin’s price has shown major changes in market sentiment through its recent price movement. The rally started on Tuesday when Bitcoin surpassed $90,000 before continuing its climb on Wednesday. Bitcoin reached and briefly surpassed $94,000 on Wednesday and stopped fluctuating above $93,000.
The market’s recent price movement maintains an upward momentum that started strengthening at the beginning of the week. Bitcoin’s increasing adoption can be attributed to developments in global macroeconomic conditions. Reports suggest that de-escalating trade tensions between the United States and China would boost global market confidence.
Related: Bitcoin Price Over $94K Sends Crypto Sentiment Gauge Firmly Into ‘Greed’
Moreover, President Trump’s statements about the leadership of the Federal Reserve have helped maintain a more optimistic sentiment. These developments have had ripple effects on investor sentiment, indicating that they favor assets with higher risk profiles, such as Bitcoin.
Short Positions Liquidated and Institutional Inflows Surge
In addition, the recent price surge caused a massive wave of short position liquidations, which further fueled Bitcoin’s ascent. During the rally, over $635 million in leveraged positions were closed out, mostly short positions. In these, $560 million in short contracts were liquidated, which indicates that traders who hadn’t expected Bitcoin’s rise were caught off guard. The liquidation of these positions created upward pressure, accelerating the price as traders were forced to cover their bets.
There has also been strong institutional interest in Bitcoin, as inflows into U.S. Bitcoin exchange-traded funds (ETFs) have been positive. With net inflows of $936 million into these investments on Tuesday, they recorded the highest single-day inflows since January. The growing trend of institutional participation reaffirms institutions’ confidence in Bitcoin as an investment vehicle and its standing as the most dominant player in the market.
Bitcoin Dominance and Future Price Outlook
Additionally, bitcoin dominance in the crypto market is rising, as evidenced by the market share. Bitcoin Dominance (BTC.D) is at 63.5%, its highest level since March 2021. The price surge and altcoin retreat support the argument that Bitcoin is again the main point of attention for investors. This could indicate increasing attention to using Bitcoin in uncertain times of global trade and geopolitical crisis.
Related: Arthur Hayes Connects Dots Between US Fiscal Policy and $110K+ Bitcoin Target
Based on current market projections, Bitcoin may strive to reach the $100,000 price point. According to analyst Michael van de Poppe, Bitcoin might surpass its all-time high before 2025 ends, provided its current trend continues. The cryptocurrency will encounter resistance after breaking into new territory as price levels between $92,000 and $94,000 become important resistance points.
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