Bitcoin surged to a record high of $116,664 on Thursday, driven by rapidly increasing institutional demand, a surge in ETF capital inflows, and new political momentum from the Trump administration.

The latest rally caught traders by surprise and triggered the highest liquidation wave in years, signaling a significant change in momentum.

As of 11:15 PM Eastern Time (ET), Bitcoin had surpassed the previous high of $113,734 set just a few hours earlier. The world's largest cryptocurrency has now risen about 24% year-to-date, with analysts targeting $130,000 as the next critical threshold.

Theo 10X Research, the latest price surge occurred when the market structure shifted to a pronounced bullish trend.

Traders Rush to Change Positions After Quiet Volatility Triggers Bullish Trend

In a note sent to clients, the company stated that a short-term breakout signal has been triggered, followed by an average increase of 20%. This implies a price target of nearly $133,000 by September.

Markus Thielen, founder of 10X, shared with Cryptonews: 'Our trading signals indicate that this short-term breakout has a 60% chance of further upside in the next two months.'

Behind the scenes, the landscape has quietly changed. Recent implied volatility has hit multi-month lows, giving traders the opportunity to bet bullishly at low prices.

At the same time, many companies have been left in the dark after options expired in June, leading to a scramble to reposition.

Over $1 Billion in Short Positions Liquidated as Bitcoin Soars

According to data from CoinGlass, over $1.14 billion in leveraged positions were liquidated in just the last 24 hours. Of that, nearly $1.02 billion came from short sellers.

Bitcoin accounted for more than half of the total losses, with $591 million liquidated. Ethereum lost $241 million, while smaller tokens like Hyperliquid, Solana, and XRP also suffered heavy losses.

Trump's Policy, $15 Billion ETF Purchase Adds Fuel to the Fire for Bitcoin

This new wave of volatility comes as Trump's crypto-friendly policies are attracting attention. In March, the president signed an executive order to establish a national cryptocurrency reserve fund. Since then, his administration has appointed crypto advocates to key positions, including SEC's Paul Atkins and AI policy head David Sacks.

Meanwhile, businesses associated with Trump are becoming increasingly involved. Trump Media & Technology Group recently filed to launch a cryptocurrency ETF fund, holding various tokens, including Bitcoin.

With stable ETF demand, loose macro conditions, and favorable regulations, many traders now view this breakout as the beginning of a broader bullish trend.

'Bitcoin may be shifting to a higher trading range,' Thielen said. 'Since mid-April, Bitcoin ETFs have bought $15 billion in BTC, and they are driving prices up.'

As the cryptocurrency market heats up once again, all attention is focused on the US CPI index next week and the start of 'Cryptocurrency Week' in Washington, both of which could bring new catalysts or risks to the world's closely monitored digital assets. $BTC