Bitcoin (BTC) exploded past the $104,000 mark on May 9, liquidating nearly $400 million in bearish positions. This marks the highest level since January 2025 and could signal the early stages of a renewed bull phase — one driven not by hype, but by solid institutional flows and global trade optimism.
According to CoinGlass, the liquidations were heavily concentrated in short positions, as overleveraged traders got caught flat-footed by Bitcoin’s unexpected breakout above $100K.
Bitcoin’s 3% Daily Jump Unlocks New Market Territory
BTC rallied more than 3.2% in a single day, rising from $101,100 to briefly touch $104,000 before stabilizing near $102,500. This price level hadn’t been seen since January 31, making it a key psychological milestone for both traders and investors.
“Crossing $104K wasn’t just technical — it was psychological warfare,” said veteran trader Olivia Grant. “It forced bears out of their comfort zone and gave bulls the conviction they’ve been waiting for.”
Bitcoin Price Table
| Metric | Value |
|---|---|
| 24H Price Change | +3.2% |
| Current Price | $102,500 |
| Daily High | $104,000 |
| Daily Low | $101,100 |
| Total Shorts Liquidated | $396 million |
| ETF Inflows (YTD) | $40 billion |
ETF Inflows Hit Record $40B — A Quiet Yet Powerful Driver
While headlines focused on the price jump, the real fuel came from the back end: Bitcoin spot ETF inflows hit a record $40 billion, according to Bloomberg ETF analyst Eric Balchunas. Institutional funds like BlackRock’s IBIT and Fidelity’s FBTC accounted for the bulk of new BTC purchases.
This inflow, combined with positive global trade developments, appears to have pulled BTC out of its recent consolidation phase and sparked real momentum.
ETF Demand Signals Institutional Momentum
The surge to $104K wasn’t driven by hype alone — it was powered by cold, hard capital. With over $40 billion in ETF inflows, institutions are now leading the charge, quietly reshaping Bitcoin’s investor base. This marks a fundamental shift from speculative retail pumps to structured, long-term accumulation by major asset managers. As one analyst put it, “We’re watching Bitcoin become Wall Street’s favorite alternative asset.”
UK–US Trade Deal and Macro Optimism Boost Bulls
Traders also credited a newly inked UK–US digital asset trade agreement as a bullish macro catalyst. The deal promises regulatory harmonization and greater capital flow between two major financial hubs — a signal that governments are warming to Bitcoin as a financial tool, not just an asset.
“This is the type of tailwind Bitcoin needed — a geopolitical greenlight,” said crypto economist Dana Hayes. “It’s not just about halving cycles anymore. It’s about global integration.”
$400M in Bearish Bets Wiped Out
According to liquidation data from CoinGlass, nearly $400 million worth of BTC shorts were liquidated in the 24-hour span — the largest single-day wipeout since November 2023.
Binance, OKX, and Bybit saw the highest liquidation volumes, with some trades being liquidated within minutes of BTC breaching the $102K zone.
“This was a classic short squeeze,” noted derivatives analyst Mark Liu. “Once $101K was cleared, bears had no time to react. Margin calls exploded.”
What This Means for the Market
The move has shifted sentiment dramatically. BTC’s strong performance — backed by record ETF flows, a short squeeze, and geopolitical news — could lay the groundwork for a sustained move toward $120,000 in the coming weeks.
Whales are reportedly accumulating again, and Google search interest in “Bitcoin price” has risen by over 30% in the past two days.
If Bitcoin continues to hold above $100K, it may become the foundation for a broad crypto market rally going into summer.
FAQs
What caused BTC’s price to spike to $104K?
The surge was driven by record ETF inflows, short liquidations, and a bullish UK–US trade agreement.
How much was liquidated in BTC shorts?
Approximately $400 million in bearish BTC positions were wiped out on May 9, 2025.
Is this the start of a new bull run?
It’s too early to call, but analysts say holding above $100K may indicate bullish continuation toward $120K.
What role did ETFs play in this surge?
Spot BTC ETFs saw over $40 billion in inflows, fueling large institutional demand that helped propel the rally.
Which exchanges saw the biggest liquidations?
Binance, OKX, and Bybit recorded the highest short liquidation volumes during the rally.
Glossary of Key Terms
Short Liquidation: Forced closure of a trader’s bearish position when BTC’s price rises unexpectedly.
ETF (Exchange-Traded Fund): A regulated investment product allowing institutional and retail investors to buy Bitcoin through traditional exchanges.
Spot Market: Where cryptocurrencies are bought and sold for immediate delivery.
Short Squeeze: A rapid upward price move that forces short sellers to buy back at a loss, driving prices even higher.
Psychological Resistance: Key price levels (like $100K) that heavily influence market behavior and sentiment.
Institutional Inflows: Large-scale investments made by firms or funds, often tracked through ETF data.
Sources and References
https://www.bloomberg.com/crypto
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