Bitcoin just smashed past $114,000, and traders on Deribit are already piling into contracts that bet it’ll hit $120,000 before the month ends.
The bets didn’t come out of nowhere. Open interest has surged around strike prices of $115K and $120K, with longer-term options aiming even higher to $140K in September, $150K by December.
This all unfolded as Bitcoin logged its second day of a record-breaking rally. The trigger? A combination of institutional demand and political expectations. Bitcoin is already up 20% this year. That’s alongside the S&P 500, which has soared 30% from its April lows. Both charts are pointing straight up.
Shorts liquidated as traders crowd into bullish positions
Deribit isn’t the only place traders are showing their hands. Chris Newhouse, head of research at Ergonia, a DeFi trading firm, said the breakout followed the biggest short liquidation event since May 7.
“Yesterday’s move to all-time highs came after the largest short liquidation event since May 7th, with approximately $447 million in positions liquidated,” Chris said. Bears had built up too much exposure, and the market punished them.
The wipeout slowed down slightly afterward. When Bitcoin crossed $112K on Wednesday, it triggered a wave of panic covering. But in the following 12 hours, only $76.5 million in liquidations took place—down sharply from the day before. Those numbers came from Coinglass, which tracks exchange activity. Traders who bet against the rally were forced out, and the rest leaned even harder into the upside.
The funding rate for Bitcoin perpetuals is still positive. That matters because it shows traders are paying to stay long, literally. It’s one of the clearest signs that bullish bets are dominating the futures market. No hesitation. People are riding this.
Trump’s comments and corporate demand lift confidence
The rally on Thursday had an extra kick. Donald Trump went on Truth Social and dropped a series of pro-crypto posts. Coming from the sitting president, it only added to the already bullish tone. Investors are banking on his administration to ease the pressure on crypto regulation, and his public stance is feeding that narrative.
Mauricio Di Bartolomeo, the CSO and co-founder of Ledn, said the rally is also being driven by corporate buyers. A wave of crypto treasury companies is loading Bitcoin onto their balance sheets.
These firms are selling shares or issuing debt to get the funds, trying to turn themselves into Bitcoin proxies for public markets. “Bitcoin has reached a new all-time high on the back of relentless demand from investors and corporations,” Mauricio said.
This is all happening while tensions rise globally. Trump’s administration is preparing tariffs set to drop in August, adding more stress to an already tense trade environment. But Roshan Roberts, CEO of OKX US, said Bitcoin isn’t flinching.
“As trade tensions flare and altcoins stumble, institutions are treating BTC as a macro hedge and a maturing asset class. July will test markets, but Bitcoin looks built for it,” Roshan said.
Prediction markets are buying into that view. Polymarket currently gives Bitcoin a 76% chance of hitting $115,000 by the end of July. With equities roaring, again, S&P 500 up 30% from April, risk assets have momentum on their side. But in crypto, it’s Bitcoin that’s leading the charge.
