The cryptocurrency market has just witnessed a powerful breakout thanks to the short squeeze effect from Bitcoin, pushing the price to a historic high of nearly 112,000 USD.
This increase triggered whales to jump into Ethereum and many other altcoins, while memecoins continued to record outstanding gains compared to other segments.
MAIN CONTENT
Bitcoin creates a new ATH near 112,000 USD in a strong short squeeze.
ETH and SUI lead the altcoins with impressive gains accompanied by significant whale inflows.
Memecoins outperform with returns double that of Layer 2 and five times that of DeFi.
How does Bitcoin short squeeze impact the cryptocurrency market?
Bitcoin's short squeeze at the beginning of July attracted significant capital inflow into the market, pushing BTC to a record high of 112,025 USD on Bybit.
This breakout came from the liquidation hunting of short positions around the 111.5 thousand USD level, creating strong buying pressure that helped BTC's price rise nearly 660 million USD in just one minute candle, according to renowned trader Cryp Nuevo.
"The liquidation level of 111.5 thousand USD has been reached! When the price is sideways, liquidation levels attract strongly like magnets."
Cryp Nuevo, cryptocurrency trader, July 2025
Jeff Park – Head of Alpha Strategy at Bitwise also agrees with this viewpoint, asserting that the short squeeze is the key reason driving the recent price increase.
Why are Ethereum and Sui leading the altcoin rally?
Ethereum and Sui are the main altcoins leading the recovery with respective increases of 6% and 9%, demonstrating significant attraction from whales in the market.
ETH rose to 2,800 USD, attracting at least 7 large whales, including Abraxas Capital and SharpLink Gaming, with a total purchase value of 358 million USD. Other altcoins like Solana and Cardano also saw stable increases ranging from 2.5% to 4%.
"The price increase and interest from the whale group are clear evidence of Ethereum's strength during the recent price surge."
Cryptocurrency market analyst, 7/2025
In addition, tokens like Hyperliquid, Monero, Bittensor, and Hedera Hashgraph also recorded increases of 5%-6%, contributing to the overall positive picture.
How did memecoins perform during the recent price surge?
Memecoins continue to lead in cryptocurrency segments with an average profit of about 10%, double that of Layer 2 and five times that of DeFi in the same period.
Memecoins such as Popcat, Useless Coin, and Dogwifhat all achieved double-digit gains, demonstrating a strong attraction from investors during rapid breakout waves.
Source: Velo
Observing on a weekly timeframe, memecoins remain the leading segment, followed by DeFi, showing stability and the ability to generate good returns during short-term recoveries.
Analyzing the macroeconomic conditions affecting cryptocurrency trading trends?
June inflation data will be released on July 15, which is expected to have a significant impact on expectations regarding the Fed's interest rate policy, thereby affecting the cryptocurrency market.
According to QCP Capital, one of the leading cryptocurrency trading desks in Asia, the market is pricing in the Fed's interest rate cut in September, although the possibility of a cut in July is almost nonexistent.
"The possibility of the Fed cutting interest rates in July has almost been ruled out. The probability of a cut in September has decreased from 90% to 70%."
QCP Capital, market report, 7/2025
Source: QCP Capital
Frequently Asked Questions
What is a Bitcoin short squeeze and how does it affect the market? A short squeeze occurs when Bitcoin's price rises sharply, forcing investors holding short positions to buy in to cut losses, creating significant buying pressure that drives the price up sharply. How does the whale purchasing ETH impact the price? Whales buying ETH in large volumes like 358 million USD create strong demand, supporting price increases and attracting retail investors. Why do memecoins increase in value outperforming other segments? Memecoins are easily influenced by short-term speculative waves and often record high profits during pump events, leading many investors to participate in search of quick profits. How do inflation and Fed interest rate policy affect cryptocurrencies? Low inflation and expectations of the Fed lowering interest rates help ease financial pressures, stimulate capital flows into cryptocurrencies, and push prices up. Which altcoins recorded outstanding growth recently? Sui and Ethereum lead with increases of 9% and 6%, respectively, attracting significant attention from institutional investors and whales.
Source: https://tintucbitcoin.com/bitcoin-tang-gia-nho-short-squeeze-etf/
Thank you for reading this article!
Please Like, Comment, and Follow TinTucBitcoin to stay updated with the latest news about the cryptocurrency market and not miss any important information!
