Key Takeaways:

Bitcoin hit a record high above $112,000, driven by over $214 million in short liquidations during a major short squeeze.
Institutional inflows, including $13B into spot ETFs since March, are supporting the rally following a market de-leveraging phase.
Analysts warn of resistance at current levels due to weak spot demand and overbought signals, while derivatives markets suggest rising volatility.

Bitcoin surged past $112,000 this week, smashing its previous record as a massive short squeeze unfolded.

Over $214 million of short bets were liquidated, contributing to a total of about $226 million in crypto-wide liquidations within 24 hours – an overwhelming bearish trap unraveling in real time.

$112,035.21. New #Bitcoin all-time high. pic.twitter.com/vJjTXz5kYp
— Bitcoin (@Bitcoin) July 9, 2025

Analysts point to this move being more than just leveraged momentum.

The breakout follows a significant de-leveraging phase: heavy short liquidations earlier this year helped clear market structure, allowing a more sustainable rally into this latest high.

Data also shows substantial institutional inflows, including over $13 billion into Bitcoin spot ETFs since March, which has bolstered market confidence.

However, resistance looms.

Some analysts note that weak spot demand and overbought RSI readings near the $112,000 level could cap further upside unless fresh capital arrives.

Meanwhile, derivatives markets remain poised for volatility, with open interest climbing to record highs, implying elevated market activity.

With macro uncertainty still hovering and a key break above $112,000 pending, the next few days may decide whether Bitcoin enters a new price discovery phase or retreats for consolidation.