Bitcoin has extended its rally for a second consecutive day, reaching a record high of US$116,000.

Open interest on the Deribit exchange has focused on call options with strike prices of US$115,000 and US$120,000.

Longer-term options expiring in September 2025 and December 2025 have also seen increased activity.

Strike prices are set at US$140,000 and US$150,000.

Data from CoinGlass indicates liquidations of US$543 million in short positions in the past hour and US$762 million over the last 12 hours.

Analysts attribute Bitcoin’s rise to institutional demand and positive market sentiment, reflected in bullish perpetual futures funding rates.

The rally coincides with “Crypto Week” in the US and growing crypto adoption, including companies adding Bitcoin to their treasuries.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Bitcoin’s price cycles show increasing stability despite volatility

Bitcoin’s current rally above $116,000 continues a pattern of dramatic price cycles that have defined the asset since its inception, though with decreasing volatility over time.

Historical data shows Bitcoin has experienced at least four major bear markets since 2009, with average price declines of approximately 45% during these downturns, comparable to the Nasdaq’s behavior during the Dotcom era 1.

The most dramatic example came after Bitcoin’s previous peak in December 2017, when prices plummeted 25% in a single day, dropping from nearly $20,000 to below $11,500 before recovering slightly to $12,800 by evening 2.

Each cycle has established higher price floors, from $0.30 in 2011 to $3,000+ after the 2017-2018 crash, suggesting growing institutional confidence in Bitcoin’s long-term value proposition despite short-term volatility 3.

The current rally’s liquidation of $543 million in short positions after breaking $116,000 demonstrates how these sharp momentum shifts continue to characterize Bitcoin markets, even as the asset matures.

2️⃣ Institutional investment driving Bitcoin’s new price regime