Bitcoin sets another new record above $113,000 as investors turn risk-on and liquidate shorts

Bitcoin has achieved yet another milestone, soaring to an all-time high on Thursday, driven by a surge of investor enthusiasm for risk assets. The leading cryptocurrency reached a peak of $113,863.18 before stabilizing at $113,766.74, reflecting an increase of over 2%. In a significant move, approximately $318 million in short positions were liquidated across centralized exchanges in the past 24 hours, as reported by CoinGlass. This phenomenon occurs when traders who bet against Bitcoin are forced to buy back into the market to cover their positions, further propelling the cryptocurrency's price upward. The rally wasn't limited to Bitcoin; other cryptocurrencies, known as altcoins, also experienced a resurgence. Ether and Solana both rose more than 2%, while Dogecoin and Cardano's token surged over 5%. XRP and Litecoin also saw gains, increasing by 3%. Despite a relatively stable trading range in recent weeks, Bitcoin has managed to maintain its value above the $100,000 mark for over two months, aided by substantial investments in Bitcoin exchange-traded funds (ETFs). Public companies have been actively purchasing Bitcoin, surpassing ETF inflows in the second quarter. The upward trend in Bitcoin's price began on Wednesday, coinciding with a broader return to risk-on sentiment among investors, which lifted the tech-heavy Nasdaq Composite to a record close. With notable institutional purchases and positive developments regarding regulatory frameworks, particularly concerning stablecoin legislation, many investors are optimistic about Bitcoin's potential for further growth in the latter half of the year.