$1.1B in Shorts Liquidated as Bitcoin Breaks ATH - What’s Next for $SOL?

‘Joyful July’ has lived up to its name. Bears were caught napping as Bitcoin smashed through resistance to record new all-time highs of $118k, liquidating over $1.1B in short positions.

Traders are optimistic that Bitcoin’s trajectory and an impending “altcoin ETF summer” could help carry Solana to new all-time highs of its own.

What’s the outlook for $SOL from here, and which Solana ecosystem tokens are catching a bid as markets gather bullish momentum?

Bitcoin Surges to New All-Time High at $118k

Bitcoin has shown the bears no mercy in the past 24 hours, printing the fabled god-candle and exploding to new all-time highs of over $118k. The breakout comes following a 63-day ranging period punctuated by geopolitical tensions that kept $BTC ensnared between $100k and $110k.

On its path to new all-time highs, $BTC triggered one of the largest short liquidation events in recent history. Based on CoinGlass data, over $1.1B worth of short positions were wiped out across centralized exchanges alone, representing the highest total of daily short liquidations recorded in the last four years.

Meanwhile, Ranger Finance data indicates that Solana’s onchain perps scene witnessed $35.9M in short liquidations, with $BTC positions constituting 59% of liquidated funds.

Naturally, Bitcoin fever is sweeping social media with unprecedented fervour. Commentators are fixated on $BTC price discovery, with some remarking that TradFi’s Bloomberg Terminal now denominates Bitcoin value in millions.

Will $SOL See New All-Time Highs?

With Bitcoin breaking new all-time highs, crypto enthusiasts are eagerly anticipating capital flows to rotate into large-cap altcoins. Optimism and euphoria are brewing throughout crypto markets, reinforced by the prospect of an “altcoin ETF Summer”.

Earlier this year, JP Morgan analysts predicted that spot Solana ETFs could witness up to $6B in capital inflows. However, these calculations didn’t account for the wealth of additional utility unlocks within the Solana ecosystem, like the launch of tokenized onchain equities.

Momentum appears to be favoring the altcoin market. For the first time in the industry’s history, a pro-crypto SEC is calling the shots. For better or worse, ‘Crypto President’ Donald Trump has made it abundantly clear that his administration wants to see crypto succeed in the United States, championing progressive legislation like the GENIUS Act.

While optimism is high, $SOL still has significant ground to cover before following Bitcoin’s lead. Currently trading hands at $163, $SOL is still an 80.3% move away from its all-time high of $294, recorded on January 19 during the $TRUMP memecoin launch. However, liquidity and historical trading volumes are particularly thin between these price ranges, suggesting $SOL could meet little resistance in volatile market conditions.

Solana Eco Tokens Show Strength

Unsurprisingly, Solana’s memecoin economy has benefited the most from Bitcoin’s gravitational upward pull. 

AI Agent pioneer Goatseus Maximus ($GOAT) enjoyed the highest price increase over the last 7D, surging 45.3%. $GOAT was closely followed by rival memecoins $BONK and $PENGU, up 44% and 32% respectively.

Among project tokens, Raydium and Helium stood out as top performers, with $HNT and $RAY rising 35% and 30% in what will be remembered as another historic week for the crypto market.

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