Major cryptocurrencies posted sharp gains across the board as a massive wave of short liquidations swept through digital asset markets. Bitcoin led the rally, briefly touching an overnight high above $75,500 before stabilizing near $75,400 in Friday trading, representing an 8% gain over 24 hours and a 19% surge on the week. The sudden upward momentum comes just days after the flagship asset traded near $64,100, effectively reclaiming price levels not seen since late May.
The aggressive price movement triggered widespread liquidations among short sellers, wiping out roughly $1 billion in bear positions across 140,416 traders over a single 24-hour window. Total market liquidations reached $1.23 billion in that timeframe. This latest washout follows an unprecedented $3 billion short liquidation the previous day—the largest single-day wipeout recorded since 2021—bringing two-day forced short coverage past $4 billion. The single largest liquidation during the latest session occurred on Hyperliquid, where a $25.13 million short bitcoin position was automatically closed.
Market analysts noted that the scale of these liquidations underscores a rally largely driven by structural market mechanics rather than immediate organic buying. In leveraged trading, exchanges automatically close positions when market movements threaten trader collateral. For short sellers betting on price declines, these forced closures require automated spot or futures buying, creating a buying cascade that accelerates upward price action. Bitcoin’s overall market capitalization has climbed to $1.5 trillion amid the squeeze, though it remains roughly 40% below its record peak above $126,000 established last October.
The broader altcoin market saw substantial participation in the rally, with major assets recording significant multi-day gains. Ether rose nearly 5% to trade around $2,375, bringing its seven-day gain to approximately 25%. Solana gained over 5% to trade just under $90, up 17% over the week, while Dogecoin climbed nearly 9% to slightly above 8 cents. XRP posted some of the strongest gains among high-cap assets, surging 16% over 24 hours to $1.29, reflecting a 28% weekly advance. Hyperliquid’s native token, HYPE, rose over 4% to nearly $73, maintaining a week-leading gain of nearly 27%. BNB also added 6% to reach $660, while Tron lagged the broader market with a modest 1.5% gain to 34 cents.
The catalyst for the crypto-wide push traces back to midweek policy developments in Washington. Financial conditions eased broadly after the U.S. Treasury doubled its long-end bond buyback operations from $2 billion to $4 billion per session, injecting liquidity across the $30 trillion Treasury market and stimulating risk appetite across global financial markets. Institutional optimism was further bolstered after President Donald Trump publicly encouraged Congress to advance the Digital Asset Market Clarity Act during a White House event alongside executives from major industry firms, including Coinbase, Gemini, Ripple, and Chainlink Labs.
