Bitcoin Nears Record High as Short Sellers Liquidated Amid Calm Rally

Bitcoin (BTC) surged past $110,000 on Monday, gaining 3.7% in 24 hours and marking its highest level in June. Now trading just 2% below its all-time high reached in May, the crypto leader appears to be regaining momentum after last week’s 10% drop toward $100,000.

Ethereum (ETH) mirrored the move, rising 3.8% to reclaim $2,620. Meanwhile, Hyperliquid and SUI (SUI) tokens outperformed with gains of 7% and 4.5%, respectively.

The sudden upswing triggered over $330 million in short liquidations across crypto markets, including $110 million in BTC shorts within an hour, according to CoinGlass. These liquidations—where bearish traders are forced to exit positions—suggest overleveraged bets have been wiped out, paving the way for a healthier trend.

Analyst Caleb Franzen of Cubic Analytics called the move a “peaceful rally,” noting consistent higher highs and lows, with buyers stepping in at every dip. Bitfinex analysts added that more than $1.9 billion in leveraged positions have been flushed over the past week, offering a steadier foundation for a potential continuation higher.

However, on-chain data reveals increased sell pressure from long-term holders, raising caution about demand sustainability. Bitfinex warned that Bitcoin now stands at a “crossroads,” awaiting a macroeconomic trigger.

Market focus is shifting to global developments, including a meeting between U.S. and Chinese trade representatives. Traders are also watching for the U.S. Consumer Price Index (CPI) release on Wednesday, which could influence inflation expectations and Fed policy.

Despite a flat performance in equities, crypto-related stocks rebounded, catching up to Bitcoin’s weekend rise. The crypto market is closely eyeing the next catalyst to determine whether BTC can break into new highs.