Dogecoin surged roughly 15% to lead a broad cryptocurrency market rebound, while bitcoin held firm above $85,000 following a sharp wave of forced buying that inflicted heavy losses on short sellers.
Dogecoin Powers the Rally
The popular meme coin outpaced the rest of the market with a double-digit gain, standing out among major tokens during the recovery. The move reflected renewed appetite for higher-risk assets as sentiment turned positive across the digital asset space.
The rebound was fueled in part by a short squeeze that forced traders betting against the market to buy back their positions. That scramble to cover shorts added upward pressure on prices, accelerating gains across leading tokens.
A $844 million wave of forced buying wiped out short sellers before running its course.
Bitcoin Steadies as Squeeze Fades
Bitcoin, the largest cryptocurrency by market value, held steady above the $85,000 mark. The token was essentially flat over the past hour, a sign that the burst of forced buying had largely exhausted itself.
The liquidation event cost short sellers roughly $844 million, according to market data, underscoring the severity of the squeeze. With those positions cleared out, the immediate driver behind the rally appeared to lose steam.
Among the major cryptocurrencies, most posted gains during the recovery, leaving Zcash as the notable exception:
- Dogecoin led the pack with a gain of about 15%
- Bitcoin remained stable above $85,000
- ZEC was the only major token trading in the red
The mixed picture suggests that while the broader market found footing, the rebound was uneven, with the bulk of the momentum concentrated in tokens that had been most heavily shorted.