A rapid round of forced buying triggered by short squeeze activity has pushed more than $1 billion in total crypto liquidations, leaving Bitcoin flat and Dogecoin as the day’s top performer among major tokens. Data from CoinGlass indicated that short sellers accounted for $844 million of total liquidations in the past 24 hours, with 135,000 traders closed out as bearish bets failed to materialize.
Short sellers face heavy losses
Short positions, which generate profits when asset prices decline, saw steep losses as bullish momentum drove prices higher. When cryptocurrency prices rise sharply, exchanges automatically liquidate short positions that can no longer meet collateral requirements, resulting in additional market buying pressure. This self-reinforcing cycle often amplifies price swings within a short period.
Bitcoin alone accounted for $608 million of liquidations, and the largest single event involved a $21 million Bitcoin position on Hyperliquid. Ether saw $181 million in positions closed. As the wave of forced buying subsided, new upward momentum now depends on organic demand rather than liquidation of short positions.
| Asset | Liquidation Amount |
|---|---|
| Bitcoin (BTC) | $608 million |
| Ether (ETH) | $181 million |
| Total short positions | $844 million |
Analysts noted that with short-driven buying largely exhausted, any further gains in Bitcoin and major altcoins will require sustained investor interest.
Dogecoin and other major tokens surge
Dogecoin experienced the strongest rally among leading cryptocurrencies, jumping more than 15% to trade just above $0.10 during Asian morning hours. CoinDesk data showed Dogecoin outpacing all other large tokens within the same time frame.
Bitcoin remained above $85,600 after rising approximately 5% in the previous 24 hours, although it showed little change in the last hour as the impact of liquidations waned.
XRP climbed 7% to approach $1.52, while Solana gained 5% to reach just below $117. Ether saw a modest increase of 3%, trading close to $2,740. Both BNB and TRX posted 1-2% gains. In contrast, Zcash (ZEC) lost 4% to fall slightly above $1,450, making it the only major token in decline.
The reduced pace of liquidations, now below $11 million per hour compared to over $300 million hourly at the peak, signals that upward price movement will rely more heavily on proactive buyers entering the market.
A short squeeze occurs when a rapid price increase forces traders who had bet against an asset to close their positions, often triggering a series of automatic purchases that further propel prices.
Mini dictionary: CoinGlass, a cryptocurrency data and analytics platform, is widely used for tracking liquidation volumes, open interest, and trading activity across major digital asset exchanges.
AI stocks boost Asian equity markets
Asian equities advanced, buoyed by investor optimism around artificial intelligence. Chipmakers Samsung Electronics and SK Hynix led the gains, tracking a rally in US semiconductor shares. South Korea’s Kospi was up 2%, and Taiwan’s benchmark stock index reached an intraday record.
Meta Platforms, a global social media conglomerate that owns Facebook, Instagram, and WhatsApp, saw strong early adoption of its AI agent Muse, which recently overtook ChatGPT as the most downloaded free app on Apple’s US App Store. According to data from Apptopia, Muse registered almost 3 million installs globally, with 40% more iOS downloads in the US and Canada during its first 12 days compared to ChatGPT’s initial launch period.
AMD, a leading semiconductor company, rose up to 10% and briefly topped $1 trillion in market capitalization for the first time. Intel and Arm also saw double-digit gains, contributing to a more than 4% rise in the Philadelphia Semiconductor Index. Chipmakers benefited from expectations that growing AI adoption would drive additional demand for advanced hardware.
Elsewhere, Alibaba announced the launch of what it described as China’s most powerful AI chip, boosting its Hong Kong-listed shares. Tencent, another major Chinese technology firm, gained after unveiling a new AI image-generation model.
The combination of AI developments and volatile cryptocurrency markets suggests a dynamic investment environment characterized by rapid cross-market movements.
