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Ether and solana extend gains as a short squeeze lifts bitcoin toward $62,000
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- DeepHorus
Ether and Solana led a broad crypto rally on Friday, with Bitcoin nearing $62,000 as a sharp short squeeze drove the market's strongest week since mid-June. Bearish traders lost $281 million in liquidations over 24 hours, nearly double the longs, pushing Bitcoin to its highest level in two weeks. Ether surged almost 10% on the week and Solana nearly 19%, while a rebound in tech stocks eased pressure from the AI trade.
Bitcoin traded around $61,360, up 2.5% over seven days, according to CoinDesk data. Ether rose 4.2% in 24 hours to about $1,702, gaining 9.7% on the week. Solana held near $80 with a weekly gain of 18.6%, the strongest among major tokens. XRP added 5.7% over the week to $1.09, and Hyperliquid's HYPE rose 5.1% on the day.
The squeeze on bearish traders unfolded as $440 million in total forced closures occurred across 95,690 traders, per Coinglass data. Short liquidations accounted for $281 million against $159 million in long liquidations. When shorts are forced to close, they buy back the asset, creating a feedback loop that turns a modest bounce into a squeeze. The largest single liquidation was an $18.2 million ether position on Hyperliquid, with ether leading damage to bears at $157 million versus Bitcoin's $103 million.
Weaker U.S. jobs data on Thursday eased expectations for further Federal Reserve rate hikes, lifting risk assets from crypto to Asian stocks. Softer hiring cuts the case for restrictive policy that has weighed on crypto since the Fed's hawkish June outlook. The dollar weakened against most major currencies, and gold climbed for a third day as rate-hike bets faded. Stocks steadied, with Asian shares rallying after tech-led losses; South Korea's Kospi climbed 3% after flirting with a technical bear market.
The stabilizing AI trade removes immediate pressure of capital rotating away from crypto markets, though it revives competition for flows that defined the first half. A rebound in tech stocks, highlighted by Samsung Electronics rising 6.8% on reports of an AI chip deal with Anthropic, supported the broader risk-on sentiment. However, the open question is whether the squeeze will turn into sustained demand as U.S. spot Bitcoin ETFs continue to see record monthly outflows and liquidity thins heading into the third quarter.
Forced short-covering produces fast moves but not durable demand, and the market enters a period of thinner liquidity that cuts both ways. While the macro backdrop has improved, persistent ETF outflows and uncertainty over Fed policy leave the rally vulnerable. Traders will watch whether additional short covering or renewed institutional interest can sustain Bitcoin above $60,000 and push altcoins higher. The coming days will test if this is a temporary squeeze or the start of a more lasting recovery.
