Dogecoin Leads Crypto Rebound as Short Squeeze Subsides

Dogecoin led the market higher during Asian morning hours on Tuesday, climbing more than 15% to trade just above 10 cents. The move comes as the broader crypto market attempts to find its footing following a volatile period of forced liquidations.

Bitcoin held steady above $85,600, showing little movement over the past hour after gaining roughly 5% over the previous 24 hours. Much of that recent upward momentum was driven by a significant short squeeze, where traders betting against the market were forced to close their positions as prices rose.

Data from CoinGlass shows that more than $1 billion in crypto positions were liquidated over the last day, with short sellers accounting for $844 million, or 82% of that total. Approximately 135,000 traders were impacted by these liquidations. Bitcoin saw $608 million in liquidations, while Ether accounted for $181 million. The largest single liquidation recorded was a nearly $21 million Bitcoin position on Hyperliquid.

With liquidations dropping to under $11 million in the past hour—down from a peak of over $300 million per hour on Monday—the market's next move will likely depend on new buying pressure rather than the forced exit of short sellers.

Other major tokens also saw gains, with XRP rising 7% to nearly $1.52 and SOL adding 5% to just under $117. Ether climbed 3% to nearly $2,740, while BNB and TRX each posted gains between 1% and 2%. ZEC was the only major token to decline, falling 4% to just above $1,450.

The crypto market's performance coincided with a positive session for Asian equities, which were bolstered by enthusiasm for artificial intelligence and semiconductor stocks. Chipmakers like Samsung Electronics and SK Hynix saw gains, tracking a rally in U.S. semiconductor shares driven by the success of Meta Platforms' new AI agent, Muse.