In a 24-hour period, bearish traders faced $281 million in liquidations—almost double the amount of longs—as Bitcoin surged to its highest point in two weeks. Ether has gained nearly 10% this week, while Solana has risen by almost 19%, aided by a rebound in tech stocks that alleviated some pressure from the AI sector.
By Shaurya Malwa Jul 3, 2026, 5:18 a.m. 2 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShow- Ether and Solana spearheaded a significant crypto rally, with Bitcoin nearing $62,000, marking the market's strongest week since mid-June as major cryptocurrencies achieved substantial weekly gains.
- A notable short squeeze was the catalyst for this surge, resulting in $281 million in liquidated bearish crypto positions within 24 hours, with Ether contributing the most to these losses.
- Weaker job data in the U.S. diminished the likelihood of additional Federal Reserve rate hikes, boosting risk assets from cryptocurrencies to Asian stocks, although it remains uncertain whether this short squeeze will lead to lasting demand amid ETF outflows and reduced liquidity.
Ether and Solana propelled the crypto market upward on Friday, with a short squeeze affecting bearish traders, driving Bitcoin close to $62,000. This marks the first truly strong week for the market since mid-June.
Bitcoin was trading around $61,360, reflecting a 2.5% increase over the week, based on CoinDesk data. Ether saw a 4.2% rise in 24 hours, reaching approximately $1,702, and has gained 9.7% for the week, while Solana hovered near $80, with an 18.6% weekly increase, the highest among major cryptocurrencies. XRP climbed 5.7% over the week to $1.09, and Hyperliquid's HYPE rose 5.1% in a single day.
Bearish traders suffered $281 million in liquidations over the last 24 hours, compared to $159 million in liquidated long positions, out of a total of $440 million in forced closures impacting 95,690 traders, as reported by Coinglass.
When bearish positions are liquidated, traders must buy back the asset, creating upward pressure on prices and triggering additional short positions, leading to a cycle that can turn a modest price increase into a significant squeeze.
The largest single liquidation involved an $18.2 million ether position on Hyperliquid, coinciding with a day when ether caused the most significant losses for bearish traders, totaling $157 million in liquidations compared to Bitcoin's $103 million.
The broader economic context played a role as well. U.S. employment data for June came in below expectations on Thursday, reducing speculation about further rate hikes from the Federal Reserve and weakening the dollar against most major currencies, as noted by Bloomberg.
Weaker job growth diminishes the justification for the restrictive policies that have pressured cryptocurrencies since the Fed's hawkish stance in June, while gold prices rose for a third consecutive day as rate hike expectations diminished.
Stock markets also stabilized. Asian shares rebounded after two days of losses driven by technology stocks, with South Korea's Kospi up 3% after nearing a technical bear market.
Samsung Electronics experienced a 6.8% increase following reports that AI company Anthropic is negotiating with them to produce a custom AI chip, indicating that investment in AI continues to support this year's stock market rally, despite ongoing debates about its pace.
The stabilizing AI sector alleviates immediate pressure on capital moving away from cryptocurrency markets, although it also reignites competition for investment flows that characterized the first half of the year.
The pivotal question remains whether this short squeeze will evolve into a sustained trend. While forced short-covering can lead to rapid price movements, it does not guarantee ongoing demand. U.S. spot Bitcoin ETFs are still facing record monthly outflows, and the market is entering the third quarter with lower liquidity, which could have mixed effects.
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Building the Zcash Machine: Tachyon and Quantum Readiness
Building the Zcash Machine: Tachyon and Quantum Readiness
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
By CoinDesk ResearchJun 30, 2026Commissioned byGenZcashZcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
Why it matters:
Zcash’s Tachyon upgrade aims to scale shielded payments, improve quantum readiness, and test whether its funding, security, and governance can hold.
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