Bitcoin Soars Past $118K, Wiping Out $100M in Shorts in One Hour

Bitcoin has surged to a new all-time high, breaking past $118,000 and shaking up the market. The move triggered massive liquidations, with over $100 million in short positions wiped out within a single hour.

According to TradingView data, BTC hit $118,231 on Friday morning. Notably, the milestone follows a previous record of over $112,000 reached just two days earlier on July 9.

Holders Move BTC Off Exchanges

Since its local bottom in April, bitcoin has jumped by over 57%, showing strong momentum over the past few months. Yet despite the sharp rise, many holders are choosing not to move their coins to exchanges.

Instead, more bitcoin is being transferred into self-custody wallets, away from trading platforms. This behavior suggests that holders are not eager to sell, even as prices rise.

Data from blockchain analytics firm Santiment supports this trend. The platform noted that among known exchange addresses, the long-term movement of BTC continues to flow into personal wallets.

In the past four months, exchanges have seen a net outflow of 315,830 BTC, marking a 21% drop in holdings. This shift indicates that an increasing number of users prefer to hold their coins offline for safety or long-term storage.

Looking back over five years to July 2020, the change is even more dramatic. Over that period, exchange balances have fallen by 1.88 million bitcoin, a 61% decrease.

Notably, the ongoing drop in exchange supply suggests that many bitcoin holders are becoming long-term participants. It also helps reduce the risk of sudden sell-offs that often cause market crashes.

Polymarket Bets Signal Optimism at $120K

The new all-time high above $116,000 aligns with market sentiment on Polymarket. The prediction platform currently places a 53% chance that bitcoin will close July at $115,000 or higher.

Most users are betting that BTC will end the month between $100,000 and $120,000. This reflects a broadly optimistic outlook on the asset’s short-term trajectory.

Polymarket assigns a 23% probability to bitcoin reaching $120,000. The odds drop to 6% for $130,000 and just 2% for a $150,000 close.