Bearish traders were forced into roughly $281 million in liquidations over the past 24 hours—almost double the losses on long positions—as bitcoin climbed to its highest level in two weeks. Ether gained nearly 10% over the week, while solana surged about 19%, supported by a recovery in tech stocks that helped ease pressure from the AI-driven equity trade.
Ether and solana led gains on Friday as a short squeeze lifted bitcoin toward $62,000, marking the crypto market’s strongest weekly performance 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 advance to 9.7%. Solana held near $80 and gained 18.6% on the week, leading major tokens. XRP added 5.7% to $1.09, while Hyperliquid’s HYPE rose 5.1% on the day.
Short sellers bore the brunt of the move, with $281 million in liquidations versus $159 million in longs, out of roughly $440 million in total forced closures across nearly 95,700 traders, according to Coinglass.
The rally was amplified by forced short covering, where traders are compelled to buy back assets to close losing positions, creating additional upward pressure as prices move through successive liquidation levels.
The largest single liquidation was an $18.2 million ether position on Hyperliquid. Ether led overall losses for bearish traders with $157 million in liquidations, compared with $103 million for bitcoin—an unusual divergence in market stress.
Macro conditions added support. Weaker-than-expected U.S. jobs data for June reduced expectations of further Federal Reserve tightening and weakened the dollar, according to Bloomberg.
Cooling labor data has eased pressure for restrictive monetary policy, which has weighed on crypto in recent months. Gold also extended gains for a third straight session as rate-hike expectations faded.
Equity markets stabilized as well, with Asian stocks rebounding after two days of tech-led declines. South Korea’s Kospi rose 3% after briefly nearing bear-market territory.
Samsung Electronics gained 6.8% after reports that AI firm Anthropic is in talks with the company to produce a custom chip, reinforcing continued strength in AI infrastructure spending despite debate over its sustainability.
The stabilization in AI-linked equities has reduced immediate capital outflows from crypto, though it also renews competition for liquidity that has shaped broader market dynamics this year.
The key question is whether the short squeeze can evolve into sustained momentum. While forced liquidations can accelerate rallies, they do not necessarily reflect durable demand. U.S. spot bitcoin ETFs are still seeing record outflows, and thinner third-quarter liquidity could amplify price swings in both directions.
