Dogecoin Leads Crypto Rebound With 15% Surge as Bitcoin Holds Above $85K

A wave of forced buying that resulted in $844 million in losses for short sellers has largely faded, leaving Bitcoin little changed over the past hour. Zcash was the only major token still trading lower.

Dogecoin climbed more than 15% to slightly above 10 cents during Tuesday’s Asian morning session, marking the strongest advance among major cryptocurrencies, according to CoinDesk data.

Bitcoin was holding above $85,600, remaining flat over the previous hour after gaining around 5% in the past 24 hours. Much of that rally was driven by traders being forced to close bearish positions as prices moved higher.

Data from CoinGlass showed that slightly more than $1 billion worth of crypto positions were liquidated during the past day. Short positions accounted for $844 million, or roughly 82% of the total, affecting about 135,000 traders.

Short sellers profit when an asset declines. Traders who borrow an asset to establish a short position must provide collateral. If prices rise enough to make that collateral insufficient to cover losses, the exchange can automatically buy back the asset to close the position. Such purchases add upward pressure on the price and can trigger further short liquidations.

Bitcoin represented approximately $608 million of the total liquidations, while Ether accounted for another $181 million. The largest individual liquidation was a Bitcoin position worth nearly $21 million on Hyperliquid.

XRP advanced 7% to nearly $1.52, while Solana gained 5% to just below $117. Ether increased 3% to almost $2,740. BNB and TRX each rose between 1% and 2%. Zcash was the only major token to decline, falling 4% to slightly above $1,450.

Crypto liquidations totaled less than $11 million during the latest hour, sharply below the more than $300 million recorded per hour at the height of Monday’s rally. With forced selling largely exhausted, further gains will increasingly depend on fresh buying rather than traders being pushed out of short positions.

AI Trade Regains Momentum

Asian equities also extended the positive tone established in U.S. markets.

MSCI’s Asia Pacific index gained nearly 1%, marking its fifth consecutive session of advances. Chipmakers Samsung Electronics and SK Hynix led the gains after following Monday’s rally in U.S. semiconductor stocks. South Korea’s Kospi rose 2%, while Taiwan’s benchmark index reached an intraday record.

Artificial intelligence remained a major driver of the move. Wall Street stocks rallied following early indications of strong adoption for Meta Platforms’ latest AI agent, while AMD moved closer to a $1 trillion market valuation.

Meta launched Muse, an AI agent operating across Facebook, Instagram and WhatsApp, nearly two weeks ago. Since then, it has overtaken ChatGPT to become the most-downloaded free app on Apple’s U.S. App Store. According to app-tracking firm Apptopia, Muse has recorded nearly 3 million downloads globally and generated almost 40% more iOS downloads across the U.S. and Canada during its first 12 days than ChatGPT did during its corresponding period after launching on mobile.

The growing use of AI agents is also fueling expectations for higher demand for computing infrastructure. Since every AI-agent response requires server-based processing, investors have been betting that widespread adoption could translate into increased demand for advanced chips.

AMD, which generates about 5% of its revenue from Meta, jumped as much as 10% Monday and briefly surpassed a $1 trillion market capitalization for the first time. Intel gained as much as 12%, while Arm rose 14%, helping the Philadelphia Semiconductor Index advance more than 4% for a fifth consecutive session.

In China, Alibaba said Tuesday that it was deploying what it described as the country’s “most powerful AI chip,” an accelerator designed to compete with Nvidia. The announcement pushed Alibaba’s Hong Kong-listed shares higher, while Tencent also advanced after unveiling a new image-generation model.

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