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Dogecoin leads market rebound with 15% pump, bitcoin steady above $85,000
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- DeepHorus
Dogecoin led a significant cryptocurrency market rebound on Tuesday, surging over 15% to trade just above $0.10 during Asian morning hours. Bitcoin, the largest cryptocurrency, held steady above $85,600 after gaining approximately 5% over the preceding 24 hours. The rally was primarily fueled by a massive wave of short-seller liquidations, not just new spot buying.
According to data from CoinGlass, over $1 billion in crypto positions were liquidated in the past day. A staggering $844 million of this total, or 82%, came from bearish short positions being forcibly closed out. This short squeeze affected roughly 135,000 traders as rising prices triggered automatic buybacks to cover their losses.
Bitcoin specifically accounted for about $608 million of the total liquidations, with Ethereum (ETH) contributing $181 million. The single largest liquidation was a nearly $21 million Bitcoin position on the Hyperliquid exchange. Other major tokens also posted gains, with XRP adding 7% to $1.52 and Solana (SOL) rising 5% to nearly $117.
The sharp increase in forced buying appears to have largely run its course. Liquidations in the last hour dropped to under $11 million, down from a peak of over $300 million an hour during Monday's move. Market analysts suggest that for crypto prices to sustain their upward momentum, new buyer demand will need to take over from the exhausted short squeeze.
The crypto rally occurred against a backdrop of strength in Asian equity markets. The MSCI Asia Pacific index rose nearly 1% for a fifth consecutive day. This positive sentiment was largely driven by enthusiasm for artificial intelligence stocks, which lifted major chipmakers like Samsung Electronics and SK Hynix.
AI's influence was highlighted by the success of Meta Platforms' new 'Muse' AI agent. The app, released nearly two weeks ago, has surpassed ChatGPT to become the top free app on Apple's U.S. App Store. It has amassed nearly 3 million installs worldwide, signaling strong demand for AI-powered services.
This AI boom directly benefits chip companies, as each query runs on server hardware. AMD stock rallied, briefly surpassing a $1 trillion market capitalization for the first time. Intel and Arm also saw significant gains, pushing the Philadelphia Semiconductor Index higher for a fifth straight session.
Looking ahead, the cryptocurrency market's next movement will be closely watched. The immediate catalyst from the short squeeze has faded, placing the focus squarely on whether fresh capital will flow into digital assets. Meanwhile, the parallel strength in AI-related equities suggests a broader risk-on sentiment in technology markets.
