Bearish traders were hit with roughly $281 million in liquidations over the past 24 hours, nearly twice the losses seen on long positions, as bitcoin climbed to its strongest level in two weeks. Ether gained nearly 10% over the week, while solana advanced about 19%, with a rebound in tech stocks helping ease pressure from the AI trade.
Ether and solana led the crypto market higher on Friday, as a short squeeze pushed bitcoin toward $62,000, rounding off what has been the sector’s strongest week since mid-June.
Bitcoin traded near $61,360, up about 2.5% over the past seven days, according to CoinDesk data. Ether rose 4.2% in the last 24 hours to around $1,702, bringing its weekly gain to 9.7%. Solana held near $80 and posted an 18.6% weekly increase, the strongest among major tokens. XRP added 5.7% over the week to $1.09, while Hyperliquid’s HYPE gained 5.1% on the day.
Short positions accounted for most of the damage, with $281 million in liquidations versus $159 million in longs, out of roughly $440 million in total forced closures affecting nearly 95,700 traders, according to Coinglass.
Forced short covering—where traders buy back assets to close positions—added fuel to the rally, amplifying upward momentum as prices moved through successive liquidation levels.
The largest single liquidation was an $18.2 million ether position on Hyperliquid. Ether led overall liquidations, accounting for $157 million in losses for bearish traders, compared with $103 million for bitcoin—an unusual shift in market dynamics.
Macro conditions also supported sentiment. Weaker-than-expected U.S. jobs data for June reduced expectations of further Federal Reserve tightening and weakened the dollar, according to Bloomberg.
Lower hiring numbers have eased pressure for restrictive monetary policy that has weighed on crypto in recent months. Gold also extended its rally for a third straight session as rate-hike expectations faded.
Equity markets stabilized as well. Asian stocks rebounded after two sessions of tech-driven losses, with South Korea’s Kospi rising 3% following brief concerns of a technical bear market.
Samsung Electronics gained 6.8% after reports that AI firm Anthropic is in discussions with the company to produce a custom AI chip, underscoring continued momentum in AI infrastructure spending despite broader investor debate over its pace.
The stabilization in AI-related equities has reduced immediate capital rotation away from crypto, though it also renews competition for liquidity that shaped earlier market cycles.
The key question now is whether the short squeeze develops into sustained momentum. While forced liquidations can drive sharp moves, they do not necessarily indicate lasting demand. U.S. spot bitcoin ETFs continue to see record outflows, and thinner liquidity heading into the third quarter could amplify volatility in both directions.
Leave a Reply