💡 Summary:
Bitcoin has surged past $118,000, setting new records as short sellers get squeezed and institutional ETF inflows soar. The article captures the mechanics of this powerful move upward.
🔍 What’s Fueling the Rally?
- Massive Short Squeeze
- Over $1.2 billion in short positions were liquidated in 48 hours.
- This liquidation wave forced traders to buy back Bitcoin, accelerating the rally.
- Exchanges like Binance and Bybit reported record margin calls.
- ETF Inflows Shatter Records
- Spot Bitcoin ETFs brought in $1.18 billion in new capital in just one week.
- Funds from BlackRock, Bitwise, and Franklin Templeton are dominating trading volume.
- Market experts say ETF demand is now driving 60–70% of daily price movement.
- Institutional Hoarding
- 130+ public companies now hold Bitcoin on their balance sheets.
- MicroStrategy leads the charge with over 600,000 BTC, worth more than $72 billion.
- Sovereign wealth funds (e.g., Norway, UAE) are rumored to be increasing exposure.
🧠 Analyst Insight:
“We’re in an environment where demand is accelerating, but available supply is shrinking. It’s the perfect storm,” said Tom Lee, Managing Partner at Fundstrat Global.
⚠️ Key Risk Mentioned:
- Some analysts warn that a cooling-off period is inevitable, as over-leveraged positions and ETF rebalancing may introduce short-term volatility.
