Introduction
Bitcoin has achieved a historic milestone, breaking above $125,000 for the first time in its 17-year history during Asian trading hours. The unprecedented rally triggered approximately $200 million in short position liquidations, with $100 million wiped out in just one hour, while nearly $50 billion in trading volume fueled the surge. Institutional interest and favorable macroeconomic conditions continue to drive the bullish momentum, with Standard Chartered analysts projecting Bitcoin could reach $135,000 in the near term and surpass $200,000 before year-end.
Key Points
- $200 million in Bitcoin short positions were liquidated during the 24-hour rally period, including $100 million in a single hour
- Standard Chartered analysts predict Bitcoin will reach $135,000 in the near term and exceed $200,000 before year-end
- Prediction market Myriad accurately forecast the $125,000 breakthrough with over 90% confidence and expects Bitcoin to outperform Ethereum in October
Historic Breakthrough and Trading Frenzy
Bitcoin’s ascent to $125,000 marks a watershed moment in cryptocurrency history, shattering its previous all-time high of $124,128. The breakthrough occurred during Asian trading hours, accompanied by nearly $50 billion in trading volume over the previous 24 hours according to data from CoinGecko. This massive trading activity underscores the intense market interest and liquidity flowing into the digital asset as institutional and retail investors alike position themselves in the evolving cryptocurrency landscape.
The price surge created a cascade of liquidations for traders betting against Bitcoin’s rise. Data from CoinGlass reveals that approximately $100 million in short positions were liquidated within a single hour as bullish traders piled in, pushing prices upward. Over the full 24-hour period, more than $200 million in BTC short positions were transformed into forced buyers, creating additional upward pressure on the market. This liquidation event represents one of the most significant short squeezes in Bitcoin’s recent history, demonstrating the power of sustained bullish momentum.
Institutional Momentum and Macroeconomic Drivers
The rally reflects a combination of favorable macroeconomic conditions and growing institutional adoption that has characterized Bitcoin’s performance throughout the year. Joe DiPasquale, CEO of crypto asset manager BitBull Capital, told Decrypt that “the broader setup remains bullish, with a prolonged government shutdown likely to continue driving interest in hard assets and supporting demand for Bitcoin as an alternative store of value.” This sentiment echoes throughout the institutional investment community, which has increasingly embraced Bitcoin as a legitimate asset class and hedge against economic uncertainty.
Despite brief signs of potential exhaustion earlier in the week, the market demonstrated remarkable resilience as traders initially appeared content to take profits just below the previous all-time high mark. However, the breakthrough above $125,000 indicates sustained buying pressure that overwhelmed profit-taking behavior. The rally stalled during early afternoon trading hours in the U.S. on Friday, but ultimately maintained its upward trajectory, suggesting underlying strength in the current market structure.
Analyst Projections and Prediction Market Accuracy
Standard Chartered, the British multinational bank with a long-standing bullish stance on Bitcoin, reinforced its optimistic outlook in an investor note published Friday. Geoff Kendrick, the bank’s global head of digital assets, stated he expects Bitcoin to reach at least $135,000 in the near term and top $200,000 before the end of the year. This projection builds on the bank’s consistent support for Bitcoin’s long-term growth potential and reflects confidence in the current market dynamics.
The accuracy of prediction markets added another layer of validation to Bitcoin’s milestone. Users on the Myriad prediction market, developed by Decrypt’s parent company Dastan, accurately forecast that Bitcoin would hit $125,000, placing odds above 90% on Friday. Currently, Myriad users also believe Bitcoin will outperform Ethereum, the second-largest cryptocurrency by market capitalization, throughout October. This crowd-sourced intelligence demonstrates growing sophistication in cryptocurrency market forecasting and highlights the diverging expectations between Bitcoin and Ethereum performance in the near term.
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