Bitcoin Surpasses $122,000… Massive Short Positions Liquidated

Uptrend This Month Ahead of US Congress 'Cryptocurrency Week'

"The sharp volatility of previous rallies has nearly vanished."

"If the $112,000 support holds, declines are a buying opportunity."

Bitcoin has broken through the $120,000 resistance level (about ₩165,740,000), further boosting investor optimism.

According to Coinbase at 5 a.m. Eastern Standard Time on the 14th in the US market, Bitcoin rose 2.8% to reach $122,480. This is an approximately 30% increase since December of last year. Bitcoin more than doubled over the past year.

The Bitcoin uptrend has also impacted smaller tokens. In the Singapore market at around noon on the same day, the second-most prominent coin, Ethereum, rose 1.5%, while Ripple and Solana climbed 2.7% each.

According to Bloomberg, the recent uptrend was fueled by the liquidation of bearish cryptocurrency bets over the weekend. Data from CoinGlass showed that short sellers of Bitcoin suffered sudden losses, leading to the disappearance of positions worth more than $1 billion.

Bitcoin’s rally was also supported by growing anticipation ahead of what Congressional committees have dubbed ‘Cryptocurrency Week.’ This week, US lawmakers are expected to discuss and possibly vote on major cryptocurrency legislation.

Rachel Lucas, a cryptocurrency analyst at BTC Market, said, “The real test lies at $125,000.” She added, “While some short-term profit-taking is expected, the strong demand for ETFs is powering a robust uptrend.” Lucas emphasized, “If the $112,000 support level holds, a pullback would be a buying opportunity, not a reversal.”

After surging post-Trump’s re-election in the US presidential race, Bitcoin traded around $100,000 for months amid fluctuations. Concerns over President Trump's inconsistent economic policies shook confidence in pro-cryptocurrency policy. However, with stocks and other risk assets hitting record highs recently, Bitcoin has resumed its uptrend.

George Mandres, Senior Trader at XBTO Trading, said, “This suggests a maturing perspective on Bitcoin.” In other words, it is “not just a speculative asset, but a macro hedge and a structurally scarce store of value.” Risk appetite has soared across equities, while institutional investors have poured in through spot Bitcoin ETFs and Ethereum ETFs, maintaining upward momentum. Mandres added, “The sharp volatility seen in the last bull market has nearly disappeared recently.”

However, some analysts viewed Bitcoin’s rally as a phenomenon occurring in isolation.

Nikolai Sondergaard, a research analyst at Nansen, pointed out, “This rally is not driven by macroeconomic factors but is rather an isolated event.” Nevertheless, Sondergaard also acknowledged, “There’s no denying that US fiscal expansion and expectations of further rate cuts have created a favorable environment for Bitcoin.”

Kim Jeong-ah, Contributing Reporter kja@hankyung.com