Bitcoin pushed toward $62,000 on Friday as a short squeeze gave the crypto market its first genuinely strong week since mid-June. The largest cryptocurrency traded at $61,360, up 2.5% over seven days, according to CoinDesk data. Ether rose 4.2% in 24 hours to about $1,702 and is up 9.7% on the week, while Solana held near $80 with a weekly gain of 18.6%, the strongest among the majors. XRP added 5.7% over the week to $1.09, and Hyperliquid's HYPE token rose 5.1% on the day.
$281M in Short Liquidations; Ether Outpaces Bitcoin in Bear Damage
Coinglass data shows $281 million in short positions were liquidated over the past 24 hours, against $159 million in longs, out of $440 million total forced closures across 95,680 traders. When shorts are forced to close, they buy back the asset, and that buying pushes prices into the next tranche of short positions, turning a modest bounce into a squeeze. The largest single liquidation was an $18.2 million Ether position on Hyperliquid. Ether shorts suffered $157 million in wiped positions versus Bitcoin's $103 million — an unusual flip favoring Ethereum in bear damage.
Macro Tailwind: Weak US Jobs Data Trims Rate Hike Bets
US June employment data came in weaker than expected on Thursday, trimming bets that the Federal Reserve will raise rates again and weakening the dollar against most major currencies, per Bloomberg. Softer hiring cuts the case for the restrictive policy that has weighed on crypto since the Fed's hawkish June outlook. Gold climbed for a third day as those rate-hike bets faded. Asian shares rallied, with South Korea's Kospi climbing 3% after flirting with a technical bear market. Samsung Electronics rose 6.8% after reports that AI firm Anthropic is in talks with the Korean company to manufacture a custom AI chip, a reminder that the AI spending underpinning this year's equity rally has not slowed. A stabilizing AI trade removes immediate pressure of capital rotating away from crypto, though it also revives competition for flows seen in the first half.
Open Question: Can the Squeeze Become a Trend?
Forced short-covering produces fast moves but not durable demand. US spot Bitcoin ETFs are still working through record monthly outflows. The market enters the third quarter with thinner liquidity that cuts both ways — amplifying both rallies and declines. Whether the squeeze turns into a sustained trend remains an open question.