Bitcoin is back in the headlines, blasting past $118,000 on Friday to set a new all-time high — and leaving short sellers nursing heavy losses. Data from CoinGlass revealed that traders betting against Bitcoin lost a staggering $1.25 billion in liquidations in just 24 hours, impacting over 267,000 traders.

This surge marks Bitcoin’s second straight day of hitting record highs. It’s not alone in the rally either: Ether also climbed to around $3,000, adding to the crypto market’s bullish momentum.

💥 Why is Bitcoin soaring?

Several factors are fueling this fresh bull run. Institutional investors have been ramping up their Bitcoin holdings, treating it more and more like “digital gold.” Meanwhile, strong inflows into Bitcoin ETFs, robust on-chain data, growing interest from big players, and hopes for a Federal Reserve rate cut later this year are keeping sentiment high.

Corporate treasuries are also stacking up on Bitcoin, betting on its long-term value, while Congress edges closer to passing key crypto legislation. All of this is giving long-time holders plenty to smile about, especially after weathering the painful downturns of recent years.

📈 Technical picture: strong but watch for pullbacks

Bitcoin’s technical signals remain upbeat. The Relative Strength Index (RSI) is at 71, showing solid bullish momentum — but also suggesting the market is slightly overheated and might see a short-term pullback.

A bullish crossover on the MACD at the end of June and rising green bars above the zero-line hint that the rally still has legs. However, analysts warn that if there’s a correction, Bitcoin might retreat to around $109K, which is seen as a new support zone.

🏦 Growing demand supports the rally

CryptoQuant data shows that the number of Bitcoin wallets hit a yearly high, with about 248,000 addresses accumulating Bitcoin — a whopping 71% jump in demand since late June. The last time the market saw a similar surge was in December 2023, when Bitcoin was around $97K.

This uptick highlights that buyers are returning in force after bearish trends dominated much of 2023. It signals deepening interest in Bitcoin’s spot market, with strategic long-term buying overpowering short-term selling pressure.

🔮 Where next?

Optimism is running high. Analysts like Michaël van de Poppe believe Bitcoin could soon test the psychological level of $120,000 as it pushes further into price discovery territory. With “crypto week” set to kick off in Washington DC and market liquidity still relatively low, traders say Bitcoin could shoot past $120K sooner than expected.

While tech stocks also made waves this week — Nvidia briefly hit a $4 trillion valuation, lifting the Nasdaq to a record close — Bitcoin is clearly enjoying its moment in the spotlight. For now, the bulls are firmly in control.