Dogecoin Surges 15%, Bitcoin Breaks $85,000… Who Will Lead the Next Rally?

▲ Dogecoin (DOGE)/ChatGPT generated image ©

Dogecoin (DOGE) surged over 15%, showing the strongest upward momentum among major cryptocurrencies, while Bitcoin (BTC) held the $85,000 level. Over $1 billion in leveraged positions were liquidated in a single day, with 82% of these concentrated in short positions, accelerating the market rebound.

According to investment media FXStreet on September 22 (local time), Dogecoin rose over 15% in the Asian market, surpassing $0.10 and recording the highest increase among major cryptocurrencies, based on CoinDesk data. Bitcoin traded above $85,600 after rising approximately 5% over 24 hours. XRP (Ripple) rose 7% to approach $1.52, Solana (SOL) rose 5% to around $117, and Ethereum (ETH) increased 3% to approximately $2,740.

A significant portion of this rebound came from short position liquidations. According to CoinGlass, over $1 billion in positions were liquidated in the cryptocurrency market over the past 24 hours, with short positions accounting for $844 million, or 82% of the total. Approximately 135,000 investors had their positions forcibly liquidated. Bitcoin liquidations amounted to about $608 million, Ethereum to $181 million, and a Bitcoin position worth approximately $21 million on Hyperliquid was recorded as the single largest liquidation.

A short position is a trade that bets on a price decrease. If the price surges and the collateral cannot cover the losses, the exchange forcibly buys the asset to close the position. The buying pressure generated during this process can further push up prices and trigger the liquidation of other short positions. However, hourly liquidation volumes have sharply decreased from over $300 million when the Monday rally peaked to less than $11 million recently. Accordingly, the media pointed out that actual buying pressure, rather than forced liquidations, has become more important for the next upward phase.

The recovery of risk appetite in global stock markets also supported the cryptocurrency market. The Morgan Stanley Capital International (MSCI) Asia Pacific Index rose about 1%, marking its fifth consecutive trading day of gains, and South Korea's KOSPI jumped 2%. The Taiwan stock market recorded an all-time high during intraday trading. In the US stock market, AI-related stocks continued to show strength, leading to a rise in semiconductor stocks; AMD surged up to 10% during Monday's trading, surpassing a market capitalization of $1 trillion for the first time. Intel and Arm also rose up to 12% and 14%, respectively.

The market's focus has now shifted to whether buying pressure will continue even after short liquidations. Although Bitcoin is holding above $85,600, Dogecoin has soared over 15%, and major altcoins have also risen, the analysis suggests that new buying demand must support further gains given the significant reduction in hourly liquidation volumes.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*